(TheNewswire)
Vancouver, British Columbia - TheNewswire - July 12, 2023 - RedLake Gold Inc. (CSE:RGLD) (“ Red Lake Gold ” orthe " Corporation ") is pleased to report thatit has today closed a non-brokered flow-through financing (the"Flow-Through Financing") by way of the issuance of2,800,000 flow-through shares (the "Flow-Through Shares") onterms previously announced by the Corporation (see news release, RedLake Gold Announces Flow-Through Financing, dated June 28,2023).
Red Lake Gold intends to use the proceeds of theFlow-Through Financing to fund future exploration work at itsWhirlwind Jack Project in Ontario, Canada.
One insider (the “Insider”), as that term isdefined by securities laws, of the Corporation participated in theFlow-Through Financing and purchased on an indirect basis an aggregateof 2,000,000 Flow-Through Shares for subscription proceeds to theCorporation of $100,000.00.
The Flow-Through Financing is exempt from the valuationand minority shareholder approval requirements of MultilateralInstrument 61-101 (“MI 61-101”) by virtue of the exemptionscontained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that thefair market value of the consideration for the securities of theCorporation to be issued to the Insider does not exceed 25% of itsmarket capitalization.
The Corporation did not file a material change reportmore than twenty-one days before the expected closing of theFlow-Through Financing as the details of the transaction therein byrelated parties of the Corporation were not settled until shortlyprior to closing of the Flow-Through Financing and the Corporationwished to close on an expedited basis for sound businessreasons.
The Corporation paid a 6% cash finders fee on aminority segment of the Flow-Through Financing involving 800,000Flow-Through Shares.
Shares issued pursuant to the Flow-Through Financingare subject to a customary four-month hold period pursuant toapplicable securities laws of Canada.
On Behalf of the Board ofDirectors
Nicholas Koo
T: 604.687.2038
Email: info@redlakegold.ca
Forward-Looking Statements
This news release contains forward-looking statements.Forward-looking statements address future events and conditions,including but not limited to matters and outcomes related to theFlow-Through Financing, including any tax and regulatory mattersrelated to the Flow-Through Financing as well as explorationintentions or plans involving the Corporation and/or its WhirlwindJack Project. Actual results may differ materially from thosecurrently expected or forecast in such statements.
Neither the CSEnor its Regulation Services Provider (as that term is defined in thepolicies of the CSE Exchange) accepts responsibility for the adequacyor accuracy of this release.
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