Red Hut Metals Signs LOI FOR Rights to GOLD-Bearing Claims IN California Update
March 15, 2017 TSXV Symbol: ROB
RED HUT METALS SIGNS LOI FOR RIGHTS TO
GOLD-BEARING CLAIMS IN CALIFORNIA
UPDATE
Vancouver, British Columbia – Red Hut Metals Inc. (the “Company” or “Red Hut”) Further to the News
Release of February 23, 2017 wherein the Company announce d that it ha d signed a Letter of Intent
(“LOI”) whereby Red Hut will acquire by way of assignment all of the contractual interests held by the
Assignors in various patented and located mineral claims (the “Property”) with a rich history of gold
mineralization in Western California, USA (the “Transaction”).
The Providence Group of Mines is located in the Summerville Mining District, Tuolumne County,
California, upon the eastern belt of the “Mother Lode” District. A number of high grade, well known
Motherlode gold mines of California are found within this belt.
The Company is pleased to announce that it has staked a further 9 claims contiguous to the existing
Providence patented and located claims. The Company acquire d the additional ground t o protect the
potential unexplored strike and down dip extensions of the known mineralization.
About the Property
The Property includes six parcels which have been fully patented and are owned in fee simple , and 22
staked mining claims on Bureau of Land Management and US Forest Service property ( 320 acres). The
Property host several historic mines and a historic mill site.
This news release has been reviewed and approved by John Kowalchuk, P.Geo., who is acting as the
Company’s Qualified Person for Providence Mines Project, in accordance with regulations under NI 43 -
101 standards. This is an arms length Transaction.
The Transaction will constitute a reviewable transaction under the policies of the TSX Venture Exchange
(the “Exchange”) and as such, it will require approval of the Exchange. As no ch ange of control will
result, Red Hut will not be required to seek the approval of its shareholders.
Private Placement
In conjunction with the Transaction, Red Hut will undertake, subject to the acceptance of the Exchange, a
private placement of at least $1,200,000 in gross proceeds (the “Financing”) through the issuance of at
least 12 million units (the “Units”) at a price of $0.10 per Unit. Each Unit will be comprised of one
common share and one -quarter of one common share purchase warrant (“Warrant”) , with each whole
Warrant entitling the holder to purchase one common share of Red Hut at a price of $0.25 per share for a
Suite 750, 580 Hornby Street, Box 113, Vancouver, British Columbia, Canada V6C 3B6
Telephone: (604) 602-4935 Fax: (604) 602-4936 E-mail: [email protected] Website: www.redhutmetals.com
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period of one year . Red Hut expects to pay finders’ fees of not more than 7% (payable in Red Hut
shares), and 7% finder’s warrants (with terms similar to the Warrants).
The funds will be used to meet the cash requirements of the Transaction and to undertake the
recommended work program for the Property.
Certain Conditions to Transaction
The completion of the Transaction will be subject to the satisfaction of certain conditions, including:
• Red Hut completing the Financing; and
• Receipt of Exchange approval of the Transaction and the Financing.
Other Matters
Subject to regulatory approval, a finder’s fee of 5% of the value of the Transaction is payable to Mackie
Research Capital Corporation of Vancouver, B.C. in the form of Red Hut Shares.
This news release does not constitute an offer of sale of any of the foregoing securities in the United
States. None of the foregoing securities have been and will not be registered under the U.S. Securities
Act of 1933, as amended (the “1933 Act”) or any applicable state securities laws and may not be offered
or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S
under the 1933 Act) or persons in the United States absent registration or an applicable exemption from
such registration requirements. This news release does not constitute an offer to sell or the solicitation of
an offer to buy nor will there any sale of the foregoing securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
ON BEHALF OF THE BOARD
Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936
Contact: Robert Eadie
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 propose d
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 n umber 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 uncertai nties; operating and technical
difficulties in connection with mineral exploration and development activities, lack of investor interest in the
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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 for ward-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.
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