TORONTO, Nov. 17, 2011 /PRNewswire/ -- Ring of Fire
Resources Inc. (the "Company") (TSX-V:ROF, FRANKFURT: RG5, OTC.PK:HWKPF) announces that
it has closed the first tranche of a private placement previously
announced in its press release of October
19, 2011. The Company has raised gross proceeds of
$636,000 in this first tranche
closing, through the sale of a total of 4,892,308 common share
units (the "Units") at $0.13
per Unit. Each Unit consists of one common share of the Company
(with 4,892,308 common shares being issued) and 1/2 warrant (with
2,446,154 warrants being issued). Each full Warrant will entitle
the holder to purchase one Common Share for a period of 2 years at
an exercise price of $0.20 per share
for the first 12 months and $0.25 per
share for the second 12 months. The Company continues to
pursue completion of this private placement, which includes
concurrent offerings of common share units and flow-through units,
on the conditions described in the Company's press release of
October 19, 2011.
All securities issued in connection with this financing will be
subject to a four-month hold period from the closing date (with the
hold period on 4,453,226 common shares and 2,226,613 warrants
expiring on March 17, 2012 and the
hold period on 439,082 common shares and 219,541 warrants expiring
on March 18, 2012). The Company has
received conditional approval of the private placement from the TSX
Venture Exchange. The private placement is subject to final
approval by the TSX Venture Exchange, as well as other applicable
regulatory approval.
Under the terms of the compensation arrangement with IBK Capital
Corp., as agent, the Company has paid a cash commission of
$57,240 to IBK Capital Corp. As
additional compensation, the Company also issued a total of 489,231
broker's warrants. Each broker warrant will entitle the
holder to acquire one common share of the Company at a price of
$0.13 per share for a period of 2
years from the date of issue.
The proceeds from the private placement will be used for working
capital purposes, to fund property acquisition payments and for
mineral exploration activities on the Company's Project 81
property.
About Project 81
Project 81 is a 60,701 hectare patented land package divided
into 2 blocks. The patents include surface, mineral and timber
rights, and host a significant timber resource plus a number of
zones that have historical exploration identifying nickel and gold
mineralization (these sample results are historical and non 43-101
compliant) from work carried out in the 1960's and 1970's
some of which have been previously announced.
About Ring of Fire Resources Inc.:
Ring of Fire Resources Inc. is a Canadian based junior
exploration company holding in excess of 60,000 hectares of
property in the Timmins,
Iroquois Falls and Smooth Rock Falls areas of Northern Ontario, upon which it plans to
develop and implement an exploration program for the balance of
2011 and 2012. It also holds a portfolio of diversified
exploration projects at various stages of exploration and drilling
for Vanadium/Nickel/Copper/Chromium/PGM in the 'Ring of Fire'
McFauld's Lake Area of Northern
Ontario, Gold in the Wawa
area of Northern Ontario, and
Uranium in Northern
Saskatchewan.
More detailed information is available on the website at
www.ringoffireresources.com
Cautionary Statement:
Neither 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. No stock exchange, securities
commission or other regulatory authority has approved or
disapproved the information contained herein.
The foregoing information may contain forward-looking statements
relating to the future performance of Ring of Fire Resources Inc.
Forward-looking statements, specifically those concerning future
performance, are subject to certain risks and uncertainties, and
actual results may differ materially from the Company's plans and
expectations. These plans, expectations, risks and uncertainties
are detailed herein and from time to time in the filings made by
the Company with the TSX Venture Exchange and securities
regulators. Ring of Fire Resources Inc. does not assume any
obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contacts:
Ring of Fire Resources Inc.
H. Vance White, President
Phone: 416-214-2250
Fax: 416-367-1954
eMail: info@ringoffireresources.com
Corinna de Beer, Investor
Relations
Phone: 416-792-0343
eMail: ir@ringoffireresources.com
SOURCE Ring of Fire Resources Inc.