Renegade Gold raises $3.4 million for Red Lake projects
Renegade Gold Inc. has closed its private placement of 17,000,000 units at $0.20 per Unit for total gross proceeds of $3,400,000. Each unit consists of one common share and one transferable share purchase warrant, each warrant exercisable into one additional common share for a period of three years from date of issue at a price of $0.25 per share.
All securities issued and made issuable under the Placement are subject to hold periods expiring August 6, 2024.
The Company intends to use the net proceeds of the Placement to extinguish debt, for exploration work on the Company's exploration properties and for general working capital.
A company controlled by two directors of the company acquired 1,250,000 Units under the Placement for a total purchase price of $250,000 and a company controlled by an officer of the Company acquired 100,000 Units under the Placement for a total purchase price of $20,000. Accordingly, the Placement is to that extent a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any securities issued to, or the consideration paid by such persons, exceed $2,500,000.
The Company did not file a material change report more than 21 days before the expected closing of the Placement as the details of the participation therein by related parties of the Company were not settled until shortly prior to closing of the Offering and the Company wished to close on an expedited basis for sound business reasons.
About Renegade Gold Inc.
Renegade Gold Inc. is a growth focused company engaged in the business of acquisition, exploration and development of mineral properties located in the Red Lake Mining District of Northern Ontario. As part of its regional-scale consolidation strategy, the Company has assembled one of the largest prospective land packages in and around the Red Lake mining district in proximity to major mines and deposits, as well as along the Confederation Lake and Birch-Uchi greenstone belts. The recent completion of the acquisition of Pacton Gold Inc. extends the Company's ownership in Red Lake to over 89,600 hectares of prospective and diversified exploration properties with significant potential for gold and critical minerals on trend with the major structures hosting known gold occurrences in the Red Lake mining district today. The Company also holds a portfolio of prospective projects in Western Australia.
Tags: Northern Ontario / Exploration / Gold / All Articles