Radisson Mining Resources, a Quebec-based mineral exploration company, has closed the first tranche of a crowdfunding round on mining centric Red Cloud Klondike Strike. The gross proceeds were said to be just over $400,000. The net proceeds of the offering will be used for exploration and development of the O’Brien project and for general administrative and corporate expenses. The initial results of the Obrien gold project were said to be favorable as disclosed in a release a year ago April. The closing of final tranche of the private placement is said to occur on or before June 7, 2016.
Under the terms of the offering, Radisson issued 2,683,402 units at a price of $0.15 per units. Each Unit consists of one class A share of the share capital of Radisson and one half-share purchase warrant (“1/2 Warrant”). Each full Warrant entitles its holder thereof to purchase one class A share at a price of $0.20 until November 6, 2017. In accordance with Canadian securities laws, the securities issued and issuable in the first tranche of this private placement are subject to a four-month hold period expiring on September 7, 2016.
According to a company release, three directors made contributions to the private placement for a total amount of $85,000.05 representing 566,667 units. In connection with this first tranche of the private placement, Radisson paid a cash commission in the amount of $19,600 and 170,338 agent warrants entitling RCKS to acquire one class A share of the share capital of Radisson at $0.15 until November 6, 2017. As a result of the private placement, there are currently 91,044,598 class A shares of Radisson issued and outstanding.
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