TORONTO, June 4, 2013 /CNW/ - Red Tiger Mining Inc., (TSXV-RMN), (the "Company") announces that it intends to carry out, subject to the approval of the TSX Venture Exchange (the "TSXV"), a non-brokered private placement to, among other investors, insiders of the Company ("Insiders") for gross proceeds of up to CAD$2,000,000 (the "Private Placement") consisting of common shares of the Company (each, a "Share") at a price of CAD$0.18 per Share. 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.
No commission or finder's fee will be paid in connection with the Private Placement. A portion of the gross proceeds is expected to be subscribed for by the Insiders, with the balance reserved for non-Insiders. Non-insiders interested in participating are urged to contact the Company. The Shares will be offered pursuant to exemptions from prospectus requirements of applicable securities legislation and will be subject to a hold period of four months and a day from their date of issuance.
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 which incorporates 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.
The Company would also like to announce that P&E Mining Consultants Inc. of Brampton, Ontario has been retained to provide a National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical report (the "Technical Report"), providing updated and independent resource/reserve disclosure for the Company's San Antonio Property, Sonora State, Mexico. The Technical Report is expected to be completed by the end of June or early July, 2013. Consequently, until the completion of the Technical Report, the Company advises investors to not rely on any of the economic projections contained in its previous NI 43-101 technical reports.
Red Tiger is listed on the TSX Venture Exchange (symbol "RMN"). The number of shares outstanding is 97,848,557.
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.
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