Redzone Resources Announces $300,000 Non-Brokered Private Placement
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NEWS RELEASE April 10, 2017
Redzone Resources Announces $300,000 Non-Brokered Private
Placement
Vancouver, British Columbia – Redzone Resources Ltd. (the
“Corporation”) (TSX-V: REZ) announces that it intends to
complete a non-brokered private placement financing of up to
1,875,000 units (the “Units”) at a price of $0.16 per Unit for gross
proceeds of up to $300,000 (the “Offering”). Each Unit will
consist of one common share in the capital of the Corporation
(“Common Share”) and one-half (½) of one Common Share
purchase warrant (“Warrant”). Each whole Warrant will entitle
the holder to acquire one Common Share for $0.24 for a period of
two years from the date of issuance.
The Corporation will have the option to force the conversion of the
Warrants should the closing price at which the Common Shares
trade equal or exceed $ 0.40 for 20 consecutive trading days
following the date that is four months and one day after the date of
issuance of the Warrants, to the date which is 30 days following
the date a news release is issued by the Corporation announcing
the reduced term of the Warrants. Any Warrants not exercised on
or before such 30 th business day will expire and will no longer be
exercisable to acquire Common Shares.
The Corporation intends to use the net proceeds from the Offering
to finance its review of potential acquisition targets including the
completion of associated due diligence, and to advance a drilling
permit application of its Fortnum lithium property located in
Arizona.
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The Corporation intends to complete the Offering on or around
April 25, 2017.
Insiders of the Corporation may acquire up to 50% of the Units
sold pursuant to the Offering.
The Offering is subject to certain conditions including, but not
limited to, the receipt of all necessary approvals, including the
approval of the TSX Venture Exchange (“ TSX-V”). The securities
issued pursuant to the Offering will be subject to a four month and
one day statutory hold period.
About Redzone Resources Ltd.
The Company is a mineral exploration company wit h a current
focus on Lithium . The Corporation is listed on the TSX -V under
the ticker symbol “REZ” and more information about the
Corporation is available on its issuer p rofile on SEDAR at
www.sedar.com or at www.redzoneresources.ca.
For further information, please contact:
Michael Murphy
President and CEO
Neither TSX-V nor its Regulation Services Provider (as that term
is defined in the policies of the TSX- V) accepts responsibility for
the adequacy or accuracy of this news release.
This news release contains “forward-looking statements” including
but not limited to statements with respect to the Corporation’s
plans to complete the Offering and the anticipated use of proceeds
of the Offering . Forward -looking statements, while based on
management’s best estimates and assumptions, are subject to risks
and uncertainties that may cause actual results to be materially
different from those expressed or implied by such forward -looking
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statements, including but not limited to: risks related to receipt of
regulatory approvals, the ability to complete the Offering on the
terms contemplated or at all, risks related to general economic and
market conditions; risks related to the availability of financing; the
timing and content of upcoming work programs; actual results of
proposed exploration activities; possible variations in mineral
resources or grade; failure of plant, equipment or processes to
operate as anticipated; accidents, labour disputes, title d isputes,
claims and limitations on insurance coverage and other risks of the
mining industry; changes in national and local government
regulation of mining operations, tax rules and regulations.
Although the Corporation has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward -looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. 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. The Corporation undertakes no obligation or
responsibility to update forward -looking statements, except as
required by law.