Radisson Mining {TSX.V: RDS}
Announced the bought deal placement previously announced has been increased to $6 million due to investor demand.
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Radisson Mining increases financing to $6-million
2019-08-07 04:26 ET – News Release
Mr. Hubert Parent-Bouchard reports
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RADISSON ANNOUNCES UPSIZE OF ITS PREVIOUSLY ANNOUNCED BOUGHT DEAL PRIVATE PLACEMENT TO $6 MILLION
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Due to investor demand in connection with its previously announced bought deal private placement Radisson Mining Resources Inc. and a syndicate of underwriters led by Laurentian Bank Securities Inc. and Clarus Securities Inc., as co-bookrunner and co-lead underwriters, have agreed to increase the size of the previously announced offering to $6-million.
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The offering will now consist of the issuance of a maximum of $3,094,000 of units of the company at a price of 15 cents per hard unit and the remaining from the sale of Class A shares of the company that qualify as flow-through Class A shares in any combination of: (i) up to a maximum of $500,000 of federal flow-through Class A shares of the company at a price of 16.5 cents per federal FT share, and (ii) Quebec flow-through Class A shares of the company at a price of 21 cents per Quebec FT share.
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Each hard unit will consist of one Class A share of the company and one-half of a Class A share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional Class A share of the company for a period of 24 months from the closing of the offering at a price of 21 cents.
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“We are extremely pleased with the growing demand from investors resulting in an upsize for this private placement,“ comments Mario Bouchard, president and chief executive officer of Radisson. “The offering was very well supported by insiders, existing shareholders and several new institutional shareholders as we continue to execute our vision of delivering value to our shareholders through the exploration of the O’Brien gold project.”
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The net proceeds from the sale of the hard units will be used to finance the exploration and development of the 100-per-cent-owned O’Brien gold project and for general corporate and working capital purposes. The gross proceeds received by the company from the sale of the FT shares will be used to incur Canadian exploration expenses (CEE) that are flow-through mining expenditures (as such terms are defined in the Income Tax Act (Canada)) on the O’Brien gold project in the province of Quebec, which will be renounced to the subscribers with an effective date no later than Dec. 31, 2019, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of FT shares.
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For purchasers of Quebec FT shares resident in the province of Quebec, 10 per cent of the amount of CEE will be eligible for inclusion in the deductible exploration base relating to certain Quebec exploration expenses and 10 per cent of the amount of the expenses will be eligible for inclusion in the deductible exploration base relating to certain Quebec surface mining exploration expenses (as such terms are defined in the Taxation Act (Quebec), respectively) giving rise to an additional 20-per-cent deduction for Quebec tax purposes.
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The hard units and FT shares shall be distributed in Canada pursuant to private placement exemptions in each of the provinces of Canada, and the hard units shall be distributed in the United States on a private placement basis pursuant to exemptions from the registration requirements pursuant to Rule 144A of the United States Securities Act of 1933, as amended, in a manner that does not require the hard units to be registered in the United States. The hard units may also be sold in such other international jurisdictions as the company and the underwriter may agree.
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The offering is scheduled to close on or about Aug. 23, 2019, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including that of the TSX Venture Exchange.
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All securities issued pursuant to this Offering will be subject to a restricted period of four months and a day from the closing date, under applicable Canadian securities legislation.
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