TORONTO, May 14, 2012 /CNW/ - Red Tiger Mining Inc., (TSXV-RMN), (the "Company") announces that it intends to carry out, subject to approval from the TSX Venture Exchange (the "TSXV"), a non-brokered private placement to insiders of the Company ("Insiders") for gross proceeds of up to $2,000,000 (the "Private Placement").
The Private Placement will consist of up to 4,166,667 units of the Company (each, a "Unit"), at a price of $0.48 per Unit. Each Unit will consist of one common share of the Company (each, a "Common Share") along with one Common Share purchase warrant (each, a "Warrant"). Each warrant may be exercised for one additional Common Share at a price of $0.75 per Common Share for a period of three years from the closing of the Private Placement. No commission or finder's fee will be paid in connection with the Private Placement.
Units will be offered to Insiders pursuant to exemptions from prospectus requirements of applicable securities legislation. Proceeds from the Private Placement will be used to provide additional working capital to Minerales Libertad, S.A. de C.V., the Company's wholly-owned subsidiary, at a time when the Solvent Extraction and Electrowinning Plant of the Luz del Cobre copper mine (Sonora, Mexico) is in the final stage of commissioning.
Securities issued pursuant to the Private Placement will be subject to a hold period of four months and a day from the date of issuance of the securities.
As Insiders will participate in the Private Placement, any such subscriptions will be considered to be related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely 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 Insider participation.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding.
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.
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