Red Canyon Resources Secures Funds Through Charity Flow-Through Offering
Recent Fundraising Success for Red Canyon Resources
Red Canyon Resources Ltd. (CSE: REDC, OTCQB: REDRF) has recently achieved a significant milestone by completing an over-subscribed financing through a charity flow-through private placement. This strategic move has generated gross proceeds amounting to $2,318,880 by issuing 8,525,295 Charity Flow Through Common Shares, priced at $0.272 per share. This fundraising effort is not only a testament to the company’s promising future but also highlights the strong interest from investors eager to support mineral exploration initiatives.
Key Investment from Teck Resources
In a notable development, Teck Resources Limited has made a substantial investment by acquiring a 9.9% equity interest in Red Canyon through the purchase of 6,301,868 common shares under the Charity FT Offering at a back-end price of $0.17 per share. This investment, totaling $1,714,108, positions Teck as a pivotal strategic investor for Red Canyon, opening avenues for future collaboration and growth.
Support from Existing Shareholder
Crescat Capital LLC, a major existing shareholder, also participated in the financing, ensuring their continued support for Red Canyon while maintaining their proportionate equity ownership in the company. This level of backing from established investors illustrates growing confidence in Red Canyon's potential, especially in light of the company's ongoing projects.
Exploration Focused on Critical Minerals
The funds raised from the Charity FT Offering will be strategically utilized to cover eligible Canadian exploration expenses. The targeted areas for exploration include the Kendal project and additional projects located across British Columbia. The flow-through critical mineral mining expenditures incurred are also eligible for a federal 30% investment tax credit for individual investors, highlighting the financial incentives associated with these investments.
Investor Rights Agreement with Teck
Further solidifying this strategic partnership, Red Canyon has entered into an Investor Rights Agreement with Teck Resources. This agreement allows Teck the right to participate in future share issuances, ensuring they maintain their equity position in the company as it grows.
About Red Canyon Resources
Red Canyon Resources Ltd. is dedicated to mineral exploration, specializing in copper and copper-gold porphyry projects in North America, particularly within top mining jurisdictions. Their portfolio is 100% owned and managed by a team of seasoned geoscientists who possess extensive industry experience and a successful track record.
Part of NewQuest Capital Group
The company is a member of the NewQuest Capital Group, an investment group focused on generating value through the incubation and funding of mineral exploration projects. This affiliation further enhances Red Canyon's capabilities and resources for future endeavors.
Contact Information
For more information regarding the company or investor relations, individuals can reach out to:
Wendell Zerb, P. Geol
Chairman and Chief Executive Officer
+1 (604) 681-9100
wzerb@redcanyonresources.com
Brennan Zerb
Investor Relations Manager
+1 (778) 867-5016
bzerb@redcanyonresources.com
Frequently Asked Questions
What is the purpose of the Charity FT Offering?
The Charity FT Offering aims to raise funds for Canadian exploration expenses related to Red Canyon's mineral projects.
Who invested in Red Canyon's latest offering?
Teck Resources Limited invested significantly, acquiring a 9.9% equity interest in the company.
What are flow-through shares?
Flow-through shares are a type of investment in which the tax benefits related to the exploration expenses can be passed on to the shareholders.
How will the proceeds be utilized?
Proceeds will go towards critical mineral mining expenditures to support Red Canyon's ongoing exploration efforts.
What is Red Canyon's main focus?
Red Canyon focuses on discovering and advancing copper and copper-gold porphyry exploration projects across North America's key jurisdictions.
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