(TheNewswire)
Vancouver, British Columbia – TheNewswire - February 7, 2024 - Red Lake GoldInc. (CSE:RGLD)(“ Red LakeGold ” or the " Corporation ") reports that it intends to seek financingat its prevailing publicly-traded market price.
Financing
The Corporation intends to conduct a non-brokered common share unitfinancing (the " HD Financing ") consisting of up to2,000,000 common share units (the “ Units ”) to be issued at a (‘hard-dollar’) price of$0.05 per Unit.
Each Unit will consist of one common share of the Corporation (a" Unit Share ") andone common share purchase warrant (a “ Warrant ”) that entitles the holder of a Warrant, uponfurther payment to the Corporation, to acquire one additional commonshare of the Corporation (a " Warrant Share ") at an exercise price of $0.05 perWarrant Share on any date prior to the date which is 60 monthsfollowing the closing date of the HD Financing or tranche thereunder.
Red Lake Gold intends to use the proceeds of the HD Financing forworking capital purposes.
Flow-Through Financing
The Corporation also intends to conduct a non-brokered flow-throughunit financing (the " Flow-Through Financing ") consisting of up to 3,000,000flow-through common share units (the " Flow-Through Units ") to beissued at a price of $0.05 per Flow-Through Unit.
Each Flow-Through Unit will consist of one common share of theCorporation (a " Flow-ThroughShare ") and one common share purchase warrant (an “ FT Warrant ”) that entitles theholder of an FT Warrant, upon further payment to the Corporation, toacquire one additional common share of the Corporation (an " FT Warrant Common Share ") at anexercise price of $0.05 per FT Warrant Common Share on any date priorto the date which is 60 months following the closing date of theFlow-Through Financing or tranche thereunder.
Red Lake Gold intends to use the proceeds of the Flow-ThroughFinancing for exploration work.
Additional Information
The Corporation may pay a 6% cash finder’s fee on certainsubscriptions under the HD Financing and/or the Flow-ThroughFinancing, which excludes cash finder’s fees on subscriptions byInsiders (as that term is defined by securities laws) who may in turnparticipate for greater than 25% of the HD Financing and/orFlow-Through Financing.
The Corporation requires working capital to remain a going-concern(see also “Risks and Uncertainties” sections of theCorporation’s financial reports available on SEDAR+).
The Corporation requires exploration funding to maintain thegood-standing status of its mining claims. This includes, but is notlimited to, mining claims that the Corporation considers to be ‘coreareas’ at its Whirlwind Jack Project near Red Lake.
Mineral claims held by the Corporation are subject to minimum annuallevels of government-imposed exploration work obligations (or use ofpreviously earned assessment credits stored in excess, if any andwhere applicable). A mining claim where annual exploration thresholdsare not met customarily results in the cancellation of that miningclaim and its reversion to the Crown (see also “Risks andUncertainties” sections of the Corporation’s financial reportsavailable on SEDAR+). Given market and funding conditions, theCorporation aims, subject to being able to successfully source capital(which is uncertain), to prioritize the upkeep of core project areas,with non-core areas likely being subject to forward-moving Crownreversion.
There is no assurance that the Corporation will be able to sourcefunds and/or complete either the HD Financing or the Flow-ThroughFinancing, either in part or in whole.
If completed either in part or in whole, the HD Financing andFlow-Through Financing are subject to all applicable regulatoryapprovals and customary four-month hold periods on securities issuedthereunder, all as pursuant to applicable securities laws of Canada.
On Behalf of the Board ofDirectors
Ryan Kalt
Chairman & Chief Executive Officer
T: 604.687.2038
Email: info@redlakegold.ca
Forward-Looking Statements
This news release contains forward-looking statements. Forward-lookingstatements address future events and conditions and therefore involveinherent risks and uncertainties, including but not limited to thenumber of Units issued, if any, under the HD Financing and theclosing, if any, of the HD Financing, and the number of Flow-ThroughUnits issued, if any, under the Flow-Through Financing, as theclosing, if any, of the Flow-Through Financing. Actual results maydiffer materially from those currently expected or forecast in suchstatements.
Neither the CSE nor its RegulationServices Provider (as that term is defined in the policies of the CSEExchange) accepts responsibility for the adequacy or accuracy of thisrelease.
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