The Offering was fully subscribed due in-part to the continued support received from existing shareholders including
The proceeds from the Offering will be used for exploration activities at the Company's western
Insiders of the Company purchased a total of 275,000 Units. The participation by Insiders in the Offering constitutes a 'related party transaction' for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The Company is relying upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval for the Offering on the basis that the fair market value of the participation by related parties in the Offering is less than 25% of the Company's current market capitalization.
Cash finder's fees of
Charity Flow-Through Financing
The Company is pleased to announce that it has received firm commitments to raise an additional, approximately
Each Charity FT Unit consists of one flow-through common share of the Company (each, a 'FT Share') and one-half of one common share purchase warrant (each whole such warrant, a 'Warrant'). Each Warrant is exercisable into one common share of the Company (each, a 'Warrant Share') at a price of
The issue price represents a 54% premium to the last closing price of Red Canyon common shares on the Canadian Securities Exchange ('CSE') as of
The proceeds from the Charity FT Offering will be used to incur eligible 'Canadian exploration expenses' that qualify as 'flow-through critical mineral mining expenditures' as both terms are defined in the Tax Act (the 'Qualifying Expenditures') related to the Company's Kendal project and other projects in
The closing of the Charity FT Offering is subject to certain conditions including, but not limited to, approval of the CSE and receipt of all required regulatory and other approvals.
All securities issued will be subject to a statutory hold period of four months and one day.
The offered securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the 'Securities Act') or any state securities laws and may not be offered or sold to, or for the account or benefit of, any person in
About Red Canyon Resources
Red Canyon is part of the
Contact:
P. Geol
Chairman and Chief Executive Officer
Tel: +1 (604) 681-9100
Email: wzerb@redcanyonresources.com
Investor Relations Manager
Tel: +1 (778) 867-5016
Email: bzerb@redcanyonresources.com
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this press release.
Forward-Looking Statements
This news release includes certain forward-looking statements and forward-looking information (collectively, 'forward-looking statements') within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future capital expenditures, exploration activities and the specifications, targets, results, analyses, interpretations, benefits, costs and timing of them, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as 'pro forma', 'plans', 'expects', 'may', 'should', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', 'believes', 'potential' or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to the anticipated business plans and timing of future activities of the Company, including the Company's exploration plans and the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, the ability of the Company to obtain the required permits, changes in laws, regulations and policies affecting mining operations, the Company's limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as those factors discussed under the heading 'Risk Factors' in the Company's prospectus dated
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements, except as otherwise required by law.
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