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Red Metal (CSE:RMES) announces $1M private placement

Mining, The Market Online Deal Room
CSE:RMES
25 March 2022 14:30 (EST)

Source: Streetwise Reports

Red Metal Resources (RMES) has announced a non-brokered private placement for gross proceeds of up to $1 million.

The company will issue up to 6,666,667 units at a price of $0.15 per unit. Each unit will consist of one common share in the capital of the company and one whole transferable common share purchase warrant. Each whole warrant will entitle the holder to buy one common share for 24 months from its date of issue.

Each warrant share will be bought at an exercise price of $0.30 for the first 12 months from its date of issue and $0.60 per warrant share for the remaining 12 months.

Certain insiders of the company may acquire units in the offering.

Red Metal intends to use the net proceeds of the offering to advance Red Metal’s flagship Carrizal copper-gold-cobalt property in Atacama, Chile and for working capital purposes.

The company may pay finders’ fees on a portion of the offering, subject to applicable securities legislation.

All securities issued will be subject to a statutory four-month hold period.

Red Metal Resources is a mineral exploration company focused on growth through acquiring, exploring and developing copper-cobalt-gold assets in Chile.

Red Metal Resources Ltd. (RMES) share price stood at $0.195 as at 1.06 PM ET, having lost $0.005 or 2.50 per cent.

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