pcNewsWire – Red Hut Metals Inc. (TSX-V: ROB) has closed its part-and-parcel private placement, issuing 9,600,000 units at a price of $0.10 per unit for gross proceeds of $960,000.
Proceeds will be applied primarily to meet the cash requirements of the proposed acquisition of an interest in the Providence Gold Mines in California, and to undertake the recommended initial work program for the property.
RED HUT METALS CLOSES PRIVATE PLACEMENT
Vancouver, British Columbia – Red Hut Metals Inc. (the “Company” or “Red Hut”) announces that it has closed its part-and-parcel private placement, issuing 9,600,000 units (the “Units”) at a price of $0.10 per Unit, for gross proceeds of $960,000. Each Unit is comprised of one share and one-quarter of one share purchase warrant (“Warrant”) with each whole Warrant entitling the holder to purchase one share of Red Hut at a price of $0.25 per share for a period of one year.
An aggregate of 637,700 common shares and 637,700 warrants containing the same terms as the Warrants attached to the Units were issued as finder’s fees to Mackie Research Capital Corporation for the portion of the private placement attributable to their efforts. All securities issued are subject to a hold period of four months and one day in accordance with the rules and policies of the Exchange and applicable Canadian securities laws.
The net proceeds of the private placement will be applied primarily to meet the cash requirements of the proposed acquisition of an interest in the Providence Gold Mines in California, and to undertake the recommended initial work program for the property. (See news releases dated February 23rd, March 15, April 5 and May 3rd, 2017). The Company has determined it does not immediately require the additional financing as previously contemplated.
The closing date for the transaction involving the Providence Gold Mines will occur following receipt of final Exchange approval, which the Company expects to receive shortly.
ON BEHALF OF THE BOARD
Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935 Facsimile: 1-604-602-4936
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 Hut Metals Inc.