Red Mile Minerals Corp. Announces Private Placement
November 30 2010 - 11:17AM
Marketwired
Red Mile Minerals Corp. (TSX VENTURE: RDM) (the "Company") is
pleased to announce a non-brokered private placement of up to
1,500,000 Flow-Through Units at a price of $0.125 per "Flow-Through
Unit" for gross proceeds of up to $187,500 and of up to 2,500,000
Non-Flow-Through Units at a price of $0.10 per "Non-Flow-Through
Unit" for additional proceeds of up to $250,000. Each Flow-Through
Unit will consist of one flow-through common share and one half of
one non-transferable common share purchase warrant; one full
warrant entitling the holder to subscribe for one additional common
share at a price of $0.25 for a period of two years from closing.
Each Non-Flow-Through Unit will consist of one common share and one
non-transferable common share purchase warrant entitling the holder
to subscribe for one additional common share at a price of $0.20
for a period of two years from closing. Together, the Flow-Through
Unit and Non-Flow-Through Unit offering represents "the Offering",
which may close in tranches.
Proceeds received from the sale of Flow-Through Shares will be
used to conduct exploration activities on the Company's newly
acquired Dorset property in Newfoundland, which expenses are
Canadian exploration expenses ("Qualifying Expenditures") for tax
purposes and will be renounced in favour of the subscribers for the
Flow-Through Shares effective on or before December 31, 2010.
Proceeds received from the sale of non-flow-through Units are
intended to be used for corporate purposes.
The Company may pay a finder's fee or commission in respect of
all, or part of, the Offering in cash, shares, warrants or a
combination thereof, as may be permitted by the applicable
Securities Laws and the policies of the Exchange.
The offering is subject to certain conditions including but not
limited to the receipt of all required regulatory approvals and
consents, including the approval of the TSX Venture Exchange.
Closing of the Offering is expected on or about December 15, 2010.
The securities of the Company issuable pursuant to the private
placement will be subject to a Canadian hold period expiring four
months and one day after the closing date.
The securities proposed to be offered in the private placement
have not been registered under the U.S. Securities Act of 1933, as
amended, or any State securities laws, and may not be offered or
sold in the United States or to U.S. Persons absent registration or
an applicable exemption from the registration requirements.
On behalf of the Board of Red Mile Minerals Corp.
John V. Hickey, President and CEO
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.
Contacts: Red Mile Minerals Corp. John V. Hickey President &
CEO (416) 637-2139 office@redmileminerals.com
www.redmileminerals.com