Radisson Mining Resources {TSX.V: RDS}
Has entered into an agreement with a syndicate of underwriters led by Laurentian Bank Securities Inc. and Clarus Securities Inc., as co-bookrunner and co-lead underwriters, to raise $4-million of securities of the company on a bought deal private placement basis.
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Radisson Mining arranges $4-million private placement
2019-07-24 15:50 ET – News Release
Mr. Mario Bouchard reports
RADISSON ANNOUNCES $4 MILLION BOUGHT DEAL PRIVATE PLACEMENT
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Radisson Mining Resources Inc. has entered into an agreement with a syndicate of underwriters led by Laurentian Bank Securities Inc. and Clarus Securities Inc., as co-bookrunner and co-lead underwriters, pursuant to which the underwriters have agreed to purchase, with a right to find substitute purchasers, $4-million of securities of the company on a bought deal private placement basis.
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The offering consists of a minimum of $2-million of units of the company at a price of 15 cents per hard unit and the remaining balance from the sale of Class A shares of the company that qualify as flow-through (FT) 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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The company has also granted the underwriters an option to purchase up to an additional $600,000 of hard units and/or FT shares, in such proportion as the underwriters may determine (subject that the aggregate amount of federal FT shares sold pursuant to the offering shall not exceed $500,000), exercisable at any time until 48 hours prior to closing, to cover overallotments, if any.
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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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About Radisson Mining Resources Inc.
Radisson is a gold exploration company focused on its 100-per-cent-owned O’Brien project, located in the Bousquet-Cadillac mining camp along the world-renowned Larder Lake-Cadillac break in Abitibi in Quebec. The Bousquet-Cadillac mining camp has produced over 21 million ounces of gold over the last 100 years. The project hosts the former O’Brien mine, considered to have been the Abitibi greenstone belt’s highest-grade gold producer during its production (1,197,147 metric tons at 15.25 grams per tonne gold (g/t) gold (Au) for 587,121 ounces of gold from 1926 to 1957; 3D Geo-solution, July, 2019).
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