Red Pine Exploration Completes $6.5 Million Brokered Private Placement
NEWS RELEASE
February 24, 2017
Red Pine Exploration Completes $6.5 Million Brokered Private Placement
Toronto, Ontario February 24, 2017 Red Pine Exploration Inc. (TSX -V:RPX) (“ Red
Pine” or the “Company”) is pleased to announce that it has closed its previously announced
brokered private placement (the “Offering”). Pursuant to the Offering, the Company issued
27,586,900 common shares that qualify as “flow -through” shares pursuant to the Income
Tax Act (Canada) (“FT Shares ”) at a price of $0.145 per FT Share and 21,168,666 units
(“Non-FT Units”) at a price of $0.12 per Non -FT Unit for aggregate gross proceeds of
$6,540,340.
The Offering was led by Eventus Capital Corp. , with a syndicate that include d Red Cloud
Klondike Strike Inc.
The FT Shares were issued on a “flow-through” basis within the meaning of the Income Tax
Act (Canada). Each Non -FT Unit consists of one non-flow-through common share of the
Company (a “Common Share”) and one common share purchase warrant (a “Non -FT
Warrant”) with each Non -FT Warrant being exercisable to purchase one Common Share at
a price of $0. 17 per share for a period of 36 months following the closing date of the
Offering.
The proceeds from the Offering will be used to further fund the exploration work on the
Wawa Gold Project. The Company intends to use the proceeds from the sale of the FT
Shares to continue to define the gold mineralization in the hanging wall and footwall of the
Surluga Deposit, by attempting to expand the resource to the North and by potentially
connecting the Surluga Deposit with other historical mines to the South on the propert y
comprising the Wawa Gold Project . There can be no assurances the Company will be
successful in defining additional gold mineralization, expanding the resource or making
such connections. The net proceeds from the sale of the Non -FT Units will be used for
exploration work on the Wawa Gold Project and for working capital purposes.
In connection with the Offering, Red Pine paid to the agents and other members of the
selling group aggregate fees in the form of cash compensation of $457,823.83 and
3,412,889 non-transferable compensation warrants, with each compensation warrant
being exercisable to acquire one Common Share at a price of $0. 135 per share for a period
of 24 months following the closing date of the Offering.
All securities issued pursuant to the Offering are subject to a restricted period of four
months and one day from the date of issuance. The Offering is subject to receipt of final
approval from the TSX Venture Exchange.
Qualified Person
Quentin Yarie, PGeo., is the qualified person responsible for preparing, supervising and
approving the scientific and technical content of this news release.
About Red Pine Exploration Inc.
Red Pine Exploration Inc. is a gold and base -metals exploration company headquartered in
Toronto, Ontario, Can ada. The Company's common shares trade on the TSX Venture
Exchange under the symbol “RPX”.
Red Pine has a 60% interest in the Wawa Gold Project with Citabar LLP holding the
remaining 40% interest. Red Pine is the Operating Manager of the Project and is focused on
expanding the existing gold resource on the property.
For more information about the Company visit www.redpineexp.com
Or contact:
Quentin Yarie, President & CEO, (416) 364-7024, [email protected]
Or Mia Boiridy, Investor Relations, (416) 364-7024, [email protected]
This News Release contains forward -looking statements. In some cases, you can identify forward -looking
statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”,
“predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These
statements are only predictions and involve known and unknown risks, uncertainties and other factor s that may
cause our or our industry’s actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or achievements expressed or implied by these
forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward -looking
information in this news release are reasonable, undue reliance should not be placed on such information, which
only applies as of the date of this news release. The Company disclaims any intention or obligation to update or
revise any forward -looking information, whether as a result of new information, future events or otherwise,
other than as required by law.
Neither TSX Venture Exchange nor its Re gulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.