Red Mile Minerals Corp. Closes First Tranche of Private Placement With MineralFields Group
August 26 2011 - 3:52PM
Marketwired
Red Mile Minerals Corp. (TSX VENTURE: RDM) ("Red Mile" or the
"Company") is pleased to announce the closing of a non-brokered
private placement of $350,000 with the MineralFields Group (the
"Offering"). Red Mile issued 2,800,000 flow-through units (the "FT
Units") at a price of $0.125 per FT Unit. Each flow-through unit is
comprised of one common share and one-half of one non-flow-through
share purchase warrant, with each whole warrant exercisable into a
common share at an exercise price of $0.15 for a term of 24 months.
Red Mile expects to close a second tranche of this financing in the
next few weeks (please see the Company's news release of August 9,
2011 for further details on the financing).
A cash finder's fee of $19,250, to Limited Market Dealer Inc.,
representing 5.5% of the gross proceeds of the Offering, was paid
by Red Mile in connection with the Offering as well as the issuance
by Red Mile of a non-transferable option (the "Finder Option") to
acquire 252,000 units of Red Mile (the "Finder Units"). The Finder
Option is exercisable into Finder Units for a period of 24 months
following the closing of the Offering at an exercise price of
$0.125 per Finder Unit. Each Finder Unit will consist of one common
share of Red Mile and one-half of one common share purchase warrant
of Red Mile, with each whole warrant exercisable into a common
share at an exercise price of $0.15 for a term of 24 months.
The gross proceeds of the Offering will be used to continue
exploration activities primarily on the Company's Dorset property
in Newfoundland.
The securities issued pursuant to the Offering will be subject
to a four month hold period from the date of closing of the
Offering.
About MineralFields Group
MineralFields Group (a division of Pathway Asset Management),
based in Toronto, Montreal, Vancouver and Calgary, is a mining fund
with significant assets under administration that offers its
tax-advantaged super flow-through limited partnerships to investors
throughout Canada as well as hard-dollar resource limited
partnerships to investors throughout the world. The sector focus is
on gold and precious metals, base metals, rare earths and lithium,
potash, uranium, oil, coal and gas. Pathway Asset Management also
specializes in the manufacturing and distribution of structured
products and mutual funds (including the Pathway Multi Series Funds
Inc. corporate-class mutual fund series). Information about
MineralFields Group is available at www.mineralfields.com. First
Canadian Securities ® (a division of Limited Market Dealer Inc.) is
active in leading resource financings (both flow-through and hard
dollar PIPE financings) on competitive, effective and
service-friendly terms, and offers investment banking, mergers and
acquisitions, and mining industry consulting, services to resource
companies. MineralFields and Pathway have financed several hundred
mining and oil and gas exploration companies to date through First
Canadian Securities ®, and have raised over $1 billion in their 10
year history.
About Red Mile Minerals
Red Mile Minerals is a tightly held mineral exploration company
with a highly prospective gold property in the prolific Baie Verte
peninsula in Newfoundland and along the historic Destor-Porcupine
gold-producing region in Ontario. Red Mile continues to seek
additional mineral exploration opportunities where the company's
exploration expertise and corporate share structure could
substantially enhance shareholder value. Currently there are
16,575,000 shares issued and outstanding.
This press release contains forward-looking statements. More
particularly, the press release contains forward-looking statements
related to the anticipated closing of the Offering and the use of
proceeds therefrom. The forward-looking statements contained in
this document are based upon certain key expectations and
assumptions made by Red Mile, including: expectations and
assumptions concerning receipt of required regulatory approvals and
the satisfaction of other conditions to the completion of and use
of proceeds from the Offering. Although Red Mile believes that the
expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because Red Mile can give
no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include,
but are not limited to, the failure to obtain necessary regulatory
approvals or satisfy the conditions to closing the Offering.
Additional information on these and other factors that could
affect Red Mile's operations and financial results are included in
reports, including Red Mile's quarterly and annual reports on file
with Canadian securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com). The forward-looking
statements contained in this document are made as of the date
hereof and Red Mile undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so
required by applicable securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
On behalf of the Board of Red Mile Minerals Corporation
John 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