VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 6, 2017) – Red Hut Metals Inc. (the “Company” or “Red Hut”) (TSX VENTURE:ROB) announces that it has closed its part-and-parcel private placement, issuing 9,600,000 units (the “Units”) at a price of $0.10 per Unit, for gross proceeds of $960,000. Each Unit is comprised of one share and one-quarter of one share purchase warrant (“Warrant”) with each whole Warrant entitling the holder to purchase one share of Red Hut at a price of $0.25 per share for a period of one year.
An aggregate of 637,700 common shares and 637,700 warrants containing the same terms as the Warrants attached to the Units were issued as finder’s fees to Mackie Research Capital Corporation for the portion of the private placement attributable to their efforts. All securities issued are subject to a hold period of four months and one day in accordance with the rules and policies of the Exchange and applicable Canadian securities laws.
The net proceeds of the private placement will be applied primarily to meet the cash requirements of the proposed acquisition of an interest in the Providence Gold Mines in California, and to undertake the recommended initial work program for the property. (See news releases dated February 23rd, March 15, April 5 and May 3rd, 2017). The Company has determined it does not immediately require the additional financing as previously contemplated.
The closing date for the transaction involving the Providence Gold Mines will occur following receipt of final Exchange approval, which the Company expects to receive shortly.
ON BEHALF OF THE BOARD
Robert Eadie, President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
