Radisson grants ROFO and announces closing of a $1.41M private placement
Rouyn-Noranda, Quebec Radisson Mining Resources Inc. (“Radisson” or the “Corporation“) is pleased to announce the closing of the second trancheof a non-brokered private placement totalling $1,411,404.76. The Corporation also announces it has granted a right of first offer (“ROFO”) to one subscriber whom acquired 5,000,000 Class A units (the “Units”) through the private placement. The ROFO will apply on any gold stream agreement that could be completed by Radisson for the underground exploration, bulk sampling or start of production at its 100% owned O’Brien gold project located along the Larder-Lake Cadillac Break halfway between the two mining towns of Rouyn-Noranda and Val-d’Or, PQ.
Mario Bouchard, President and CEO comments: “Current financing is key for the exploration and the development of the O’Brien gold project. Over the next months, the company will have the opportunity to pursue its exploration and development plan for the 100% owned O’Brien gold project while being supported by a shareholder ready to take part in its next phase of growth. We hold a low capex project in a prolific mining camp with great geological potential and surrounded by best-in-class operators. In addition to current exploration drilling program, Radisson will complete additional metallurgical testing to verify the positive nugget effect results obtained in the 2014 study and advanced engineering work for the conception of an underground exploration program. The company also intends to drill test the vertical extension of mineralized zones located within the enrichment vector defined on 36E and F Zone area through 3D modelling (See figure 1). All exploration work will be completed with main objective of unlocking O’Brien’s maximal value for our shareholders”.
On this closing of the second tranche, the Corporation raised gross proceeds of $754,000 through the issuance of 5,800,000 Units at a price of $0.13.
Each Unit consists of one Class A share of the share capital of Radisson and one-half of share purchase warrant (“Warrant”) with each full Warrant entitling its holder thereof to purchase one Class A share at a price of $0.17 for a period of 18 months following the closing date of the private placement. In accordance with Canadian securities laws, the securities issued under this private placement are subject to a four-month and one day hold period expiring on December 29, 2018.
Exclusive ROFO for a gold stream financing at the O’Brien gold project
With regards to the subscription from a European entity (the “Purchaser”) for 5,000,000 Units through the private placement, the Corporation granted the Purchaser an exclusive ROFO on any gold stream agreement that could be completed for the underground exploration, bulk sampling or start of production by Radisson on its 100% owned O’Brien gold project. The Purchaser shall be the only entity to whom such ROFO will be given regarding the O’Brien gold project of the Corporation.
The closing of this private placement is subject to final acceptance by the TSX Venture Exchange.
As a result of this first closing, there are currently 134,241,750 class A shares of Radisson issued and outstanding.
About Radisson Mining Resources Inc.
Radisson is a Quebec-based mineral exploration company. The O’Brien project, cut by the regional Cadillac Break, is Radisson’s flagship asset. 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 g/t Au for 587,121 ounces of gold from 1926 to 1957; InnovExplo, May 2018).
For more information on Radisson, visit our website at www.radissonmining.com or contact:
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Forward-Looking Statements: This press release may contain certain forward-looking information. All statements included herein, including the scheduled Closing date, but other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward looking information can be found in Radisson’s disclosure documents on the SEDAR website at www.sedar.com.