Radisson announces $6 million Private Placement

Radisson Mining Resources is raising $8 million for its O'Brien project in Quebec. The company has entered into an agreement with Eight Capital as co-lead agent and sole bookrunner, on behalf of a syndicate of agents co-led by Eight Capital, Infor Financial Inc. and BMO Capital Markets as co-lead Agents.  The corporation has launched a proposed private placement for aggregate gross proceeds for $6,000,000 in any combination of: (i) units of the Corporation (the “Hard Units”) at a price of $0.34 per Hard Unit, and the remaining balance from the sale of Class A shares of the Corporation that qualify as “flow-through Class A shares”: (ii) Quebec flow-through Class A shares of the Corporation (the “Quebec FT Shares”), at a price of $0.50 per Quebec FT Share, and (iii) Charity flow-through units (the “Charity FT Units”) at a price of $0.60 per Charity FT Unit(together with the Quebec FT Shares, the “FT Shares”).

The Corporation has also granted the Agents an option to offer for sale up to an additional $2,000,000 of Hard Units and/or FT Shares, in such proportion as the Agents may determine, exercisable at any time until 48 hours prior to Closing, to cover over-allotments, if any.

Each Hard Unit will consist of one Class A share of the Corporation and one-half of a Class A share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Class A share of the Corporation for a period of 18 months from the closing of the Offering (the “Closing”) at a price of $0.51.

Each Charity FT Unit will consist of one Charity flow-through Class A share of the Corporation and one-half of a Class A share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Class A share of the Corporation for a period of 18 months from the closing of the Offering (the “Closing”) at a price of $0.51.

The gross proceeds received by the Corporation 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 Québec, which will be renounced to the subscribers with an effective date no later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of FT Shares. For purchasers of FT Shares resident in the Province of Québec, 10% of the amount of CEE will be eligible for inclusion in the deductible “exploration base relating to certain Québec exploration expenses” and 10% of the amount of the expenses will be eligible for inclusion in the deductible “exploration base relating to certain Québec surface mining exploration expenses” (as such terms are defined in the Taxation Act (Québec), respectively) giving rise to an additional 20% deduction for Québec tax purposes.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

The Offering is scheduled to close on or about November 12, 2020 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.

About Radisson Mining Resources Inc.
Radisson is a gold exploration company focused on its 100% owned O’Brien project, located in the Bousquet-Cadillac mining camp along the world-renowned Larder-Lake-Cadillac Break in Abitibi, Québec. 

Tags: Quebec / Deals & Financial / Gold / All Articles