TORONTO, ONTARIO -- (Marketwire) -- 08/25/10 -- Red Pine Exploration Inc. ("Red Pine" or the "Company") (TSX VENTURE: RPX) announces the closing of a private placement financing (the "Offering") for total gross proceeds of $1,155,000 on August 24, 2010. Pursuant to the Offering, the Company issued 14,437,500 units (the "Units") at a price of $0.08 per Unit. Each Unit is comprised of one "flow through" common share and one half of one non-flow through common share purchase warrant. Each full warrant entitles the holder to purchase one common share of the Company for $0.15 per share and expires 24 months from the date of closing.
In respect of a portion of the Offering, the Company paid broker fees in the form of cash compensation of $35,000 and issued 437,500 non-transferable compensation options, with each such option entitling the holder to acquire one Unit at a price of $0.08 per Unit for a period of 24 months following closing.
All securities issued pursuant to the Offering are subject to a restricted period of four months and one day following closing of the Offering. The Offering is subject to receipt of final approval from the TSX Venture Exchange.
As part of the Offering, a total of 6,250,000 Units were sold to the MineralFields Group. In addition, 4,962,500 Units were issued to related parties of the Company.
The Company intends to use the proceeds of the Offering for exploration expenditures on its properties in the Timmins Region of Ontario.
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.
About Red Pine Exploration:
Red Pine Exploration has a long tradition of gold exploration and production including the Edwards property and the Edwards Gold Mine in the Wawa area of Ontario. The Company's current exploration projects focus on gold properties in Northern Ontario, specifically which are either in or near the prolific gold district of Timmins. Red Pine Exploration is based in Toronto, Ontario, Canada and trades on the TSX Venture exchange under the symbol RPX.
Administration
A total of 1,460,000 options were issued to consultants of the Company on August 25, 2010 under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last Annual General Meeting of Shareholders of the Company held on January 27, 2010. The options are exercisable at a price of $0.10 per share for a period of four years and are subject to a four-month and one day hold period from the date of the issuance.
Forward-looking statements include, receipt of regulatory approval, statements on the proposed use of proceeds; completion of financing on terms proposed; the ability to raise additional funds as required; the development potential and timetable of the Company's properties and minerals; the current and future price of minerals the Company explores; the estimated size of mineral deposits on the Company's properties; the realization of those mineral deposit estimates; the timing and amount of estimated future exploration, development and production; costs of future exploration, development and production activities; success of exploration activities; government regulatory matters; discussion of political and environmental risks.
Forward-looking statements are based on the opinions and estimates of management of the Company. Forward-looking statements are subject to known and unknown risks that may cause actual results to be materially different from stated opinions and estimates of management. Some of the Company's more material risks are: availability and timing of external financing; unexpected events and delays during exploration; receipt of government and stock exchange approvals; results of current exploration activities; future price of minerals; political risks in the locations of the Company's properties; appreciation/depreciation of foreign currencies relative to the United States Dollar (the Company's functional currency) and other risks inherent in the mining and exploration industry.
While Company's management has attempted to determine the factors that could cause actual results to differ materially from estimated results contained in forward-looking statements, there may be other factors that cause results not to be as anticipated. The Company provides no assurance that such forward-looking statements will prove accurate or not materially different than projected. Therefore readers of this and other press releases issued by the Company should not place unreasonable reliance on stated forward-looking statements.
Contacts:
Red Pine Exploration Inc.
Brent Nykoliation
Vice President of Business Development
(416) 364-7024
(416) 364-2753 (FAX)
Red Pine Exploration Inc.
Quentin Yarie, P.Geo.
Vice President of Exploration
(416) 364-7024
(416) 364-2753 (FAX)
Red Pine Exploration Inc.
Richard Schler
COO and Chief Financial Officer
(416) 364-7024
(416) 364-2753 (FAX)
info@redpineexp.com
www.redpineexp.com