Red Pine Exploration Secures $8.5 Million in Brokered Offering
Red Pine Exploration Celebrates Successful Brokered Offering
Red Pine Exploration Inc. is proud to announce the closing of its upsized brokered offering, which garnered impressive aggregate gross proceeds of $8.5 million. This completion comes as a part of a strategic financing initiative that sets the stage for further growth and exploration in gold mining, particularly at the Wawa Gold Project. The offering demonstrates considerable investor confidence in the Company's prospects and future endeavors.
Details of the Offering
The brokered offering consisted of several components ensuring a diverse range of investments. Specifically, it comprised 55,000,000 non-flow-through units (NFT Units) issued at $0.10 each, generating $5.5 million in gross proceeds. Each NFT Unit provides shareholders with one Common Share coupled with one-half of one warrant. This structure enables investors to benefit from future price increases.
Additionally, 12,500,000 flow-through units (FT Units) were included as part of the offering, priced at $0.12 each and raising $1.5 million. These units consist of one Common Share and one-half of one warrant, designed to promote funding directed towards qualifying exploration expenditures.
Furthermore, the offering featured an allocation of 10,714,284 flow-through charity units (CFT Units) at $0.14 each, equating to roughly $1.5 million in gross proceeds. Again, these units provide the same structure as FT Units but are tailored to support charitable arrangements and exploration efforts.
Future Plans with Raised Capital
Red Pine is committed to using the proceeds from this offering wisely. The funds will primarily bolster working capital and general corporate initiatives. Additionally, targeted exploration activities at the Wawa Gold Project will receive significant backing, particularly those related to technical studies and necessary permitting.
The cash generated from NFT Units will be allocated toward the evaluation of future production strategies at the gold project. This includes crucial planning to transition toward potential open-pit operations.
Involvement of Leading Agents
The successful completion of this brokered offering was facilitated by leading financial partners. Research Capital Corporation took the helm as the sole bookrunner. Collaboratively, Haywood Securities Inc. acted as co-lead agents in this initiative. Their expertise and network have significantly contributed to the offering's success.
As part of the financial arrangement, Red Pine paid a cash commission, amounting to $501,300 to the agents, along with issuing 4,605,857 broker warrants—the Agents’ Warrants. Each of these warrants provides the right to purchase Common Shares at an exercise price set at $0.10 per share for a duration of 36 months following the offering.
Exploring the Wawa Gold Project
Headquartered in Toronto, Ontario, Red Pine Exploration holds a prominent position within the gold exploration sector. The Wawa Gold Project, a key focus for the Company, is located in the Michipicoten Greenstone Belt. This region has recently attracted significant investments from various producers, reflecting its rich mineral potential.
The land package owned by Red Pine covers an expansive size of over 7,000 hectares and contains several historic gold mining sites. The project stands as a testament to the Company’s commitment to mineral exploration and development in this highly prospective area.
Company Information
For those seeking more information about Red Pine Exploration and its initiatives, additional details can be found at the official Company website. The management team, which includes President and CEO Michael Michaud, is readily accessible for inquiries, reflecting their commitment to transparency and investor relations.
Michael can be reached at (416) 364-7024, or via email. Director of Corporate Development, Manish Grigo, is also available at (416) 569-3292. Their openness showcases the Company's dedication to engaging with stakeholders and the investment community.
Frequently Asked Questions
What is the purpose of the $8.5 million brokered offering?
The offering aims to secure funding for working capital, corporate purposes, and to advance exploration initiatives at the Wawa Gold Project.
Who were the financial agents involved in the offering?
Research Capital Corporation served as the sole bookrunner, while Haywood Securities Inc. acted as co-lead agents for the engagement.
How will the funds be utilized specifically at the Wawa Gold Project?
Proceeds will finance technical studies, evaluation for potential open-pit production, and support necessary permitting processes for exploration.
What types of units were issued during the offering?
The offering included non-flow-through units (NFT), flow-through units (FT), and flow-through charity units (CFT), each structured to facilitate investor participation beneficial for mining exploration.
How does Red Pine demonstrate transparency to its investors?
Red Pine ensures transparency through open communication with investors and stakeholders, with its leadership team readily available for inquiries and updates on progress.
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