TORONTO, April 17, 2013 /CNW/ - Red Tiger Mining Inc., (TSXV-RMN), (the "Company") announces that it has closed the first tranche of its previously announced non-brokered private placement (the "Private Placement") of 5,000,000 common shares (each, a "Share") at a price of CAD$0.10 per Share for gross proceeds of CAD$500,000. The proceeds will be used by the Company for required capital expenditures and working capital at the Luz del Cobre mine, which is owned by the Company's wholly-owned subsidiary, Minerales Libertad, S.A. de C.V.
Kirkland Intertrade Corp, ("Kirkland") a company owned or controlled, directly or indirectly, by Mr. Maxim Finskiy, a director of the Company acquired all 5,000,000 Shares.
The Company also announces that it has completed its previously announced shares-for-debt transaction whereby Kirkland assigned to the Company the outstanding debt owed to it (the "Debt") under certain loan agreements (the "Loans") entered into between Kirkland and Minerales Libertad S.A. de C.V., the Company's wholly-owned subsidiary, in consideration for the issuance to Kirkland of 8,750,020 common shares of the Company (the "Debt Shares"). The Debt amounts to US$875,002, being the principal outstanding under the Loans inclusive of interest accrued thereon up to and including April 12, 2013.
The Shares and the Debt Shares are subject to a hold period expiring on August 17, 2013.
The issuance of the Shares and the Debt Shares to Kirkland are related party transactions within the meaning of TSXV Policy 5.9 which incorporates Multilateral Instrument 61-101 ("MI 61-101"). The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such issuances.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements, which are subject to risks and uncertainties and other factors that may cause the Company's results to differ materially from expectations. Specifically, this news release contains forward-looking information regarding the use of proceeds received in the Private Placement. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this news release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
SOURCE: Red Tiger Mining Inc.
For further information:
Dr. Thomas Utter
President and CEO
Tel.: +1 52 662 311 8839
CFO and Secretary
Tel.: 416 637-1517 x 107