Red Pine Exploration Inc (TSX-V:RPX, OTCQB:RDEXF) said it has completed its previously-announced bought deal financing, raising gross proceeds of C$5,518,159.70 by issuing 7,693,000 company common shares, at a price of C$0.26 per share, along with 11,726,599 Red Pine flow-through (FT) shares at a price of C$0.30 per FT share.
The gold project developer noted it plans to use the net proceeds from the sale of the non-flow-through shares for exploration at its Wawa Gold project and for working capital and general corporate purposes, while gross proceeds from the sale of the FT shares will be used to incur eligible Canadian Exploration Expenses as defined in the Income Tax Act (Canada).
Red Pine said the offering was conducted on a ‘bought deal’ basis by a syndicate of underwriters led by Haywood Securities Inc, as lead underwriter and sole bookrunner, as well as Canaccord Genuity (TSX:CF, LSE:CF) Corp and Laurentian Bank Securities Inc.
READ: Red Pine Exploration reports new results from its 2022 exploration program, which is continuing to expand the footprint of mineralization
It added that in consideration for their services, the underwriters received a cash commission equal to 6.0% of the gross proceeds of the offering and that number of non-transferable broker warrants equal to 6.0% of the number of offered securities sold in the offering.
Each broker warrant is exercisable to purchase one company common share at an exercise price of $0.26 until September 29, 2024.
As well, Red Pine reported that Alamos Gold Inc has exercised its right to maintain its pro rata ownership interest of the company's common shares, on a partially diluted basis, by purchasing 3,846,153 Red Pine offered shares, which has resulted in the gold miner owning an approximate 19.4% equity stake in Red Pine Exploration on an undiluted basis.
Red Pine also said other company insiders purchased a total of 38,500 shares of the offering.
Red Pine’s flagship Wawa Gold project is spread over 6,986 hectares and hosts several former mines with a combined historic production of 120,000 ounces of gold. The company's attractive Wawa property in Ontario has Barrick Gold's Hemlo mine to the west and Newmont's Borden mine to the east - the two largest gold producers in the world. The project also has other successful neighbours, such as Alamos Gold and Argonaut Gold.
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