VANCOUVER, July 31, 2017 /CNW/ - Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) reminds shareholders of the upcoming expiry on August 4, 2017 at 4:00 PM Eastern time of the previously announced rights offering ("Rights Offering").
Key Reasons to Exercise Rights
A Rights Offering was chosen to give the opportunity to all existing shareholders to participate on equal terms. Major shareholders including Liberty Metals & Mining Holdings, LLC, Vertex Value Fund, and Orion Mine Finance, have informed Red Eagle Mining that they intend to fully exercise their Rights amounting to approximately 65% of the offering or C $30 million. Red Eagle Mining's officers and directors also intend to participate.
At the C $0.35 per unit rights offering price, Red Eagle Mining has a C $90 million market capitalization. Red Eagle Mining owns:
- A new C $65 million processing facility;
- The San Ramon Gold Mine with an eight-year mine life (open to expansion to the east and at depth);
- Four kilometres of underground development;
- Recent satellite discoveries on the 100% owned 100 square kilometer Santa Rosa Gold Project; and
- 88% of Red Eagle Exploration ("XR") which owns 100% of the Vetas Gold, California Gold and Santa Ana Silver Projects with an allocated market capitalization of C $40 million.
Rights Terms
For each two Rights the holder will be entitled to subscribe for one Unit at a subscription price of C $0.35 per Unit until August 4, 2017. Each Unit will consist of:
- One Share of Red Eagle Mining; and
- One transferable Share purchase warrant ("Warrant") exercisable into one Share of Red Eagle Mining at a purchase price of C $0.50 per Share for a period of five years from the issue date. The Warrants will be listed for trading on the TSX subject to fulfilling the TSX minimum listing conditions.
Eligible holders of Rights, who fully exercise their Rights, will be entitled to subscribe, on a pro rata basis with other shareholders who participated in the oversubscription, for Units that have not been purchased under the Rights Offering.
Any questions regarding the Rights Offering may be directed to our Information Agent, Laurel Hill Advisory Group at +1 877 452 7184 (North American Toll-Free) or +1 416 304 0211 (Collect Calls) or by email at assistance@laurelhill.com.
About Red Eagle Mining
Red Eagle Mining is a gold producer focused on building shareholder value through acquiring, developing and operating gold projects in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining owns 100% of the Santa Rosa Gold Project, where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls Red Eagle Exploration Limited which owns 100% of the Vetas Gold, California Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
