VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 10, 2017) - Redzone Resources Ltd. (the "Corporation") (TSX VENTURE:REZ) announces that it intends to complete a non-brokered private placement financing of up to 1,875,000 units (the "Units") at a price of $0.16 per Unit for gross proceeds of up to $300,000 (the "Offering"). Each Unit will consist of one common share in the capital of the Corporation ("Common Share") and one-half (1/2) of one Common Share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share for $0.24 for a period of two years from the date of issuance.
The Corporation will have the option to force the conversion of the Warrants should the closing price at which the Common Shares trade equal or exceed $0.40 for 20 consecutive trading days following the date that is four months and one day after the date of issuance of the Warrants, to the date which is 30 days following the date a news release is issued by the Corporation announcing the reduced term of the Warrants. Any Warrants not exercised on or before such 30th business day will expire and will no longer be exercisable to acquire Common Shares.
The Corporation intends to use the net proceeds from the Offering to finance its review of potential acquisition targets including the completion of associated due diligence, and to advance a drilling permit application of its Fortnum lithium property located in Arizona.
The Corporation intends to complete the Offering on or around April 25, 2017.
Insiders of the Corporation may acquire up to 50% of the Units sold pursuant to the Offering.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange ("TSX-V"). The securities issued pursuant to the Offering will be subject to a four month and one day statutory hold period.
About Redzone Resources Ltd.
The Company is a mineral exploration company with a current focus on Lithium. The Corporation is listed on the TSX-V under the ticker symbol "REZ" and more information about the Corporation is available on its issuer profile on SEDAR at www.sedar.com or at www.redzoneresources.ca.
