St. John’s, Newfoundland and Labrador – Red Moon Resources Inc. (“the Company” – “Red Moon” TSX-V: RMK), announces the non-brokered private placement (the “Offering”) announced on January 26, 2021 has closed for proceeds of $700,000.00. Under the terms of the Offering, the Company placed 7,000,000 units (the “Units”) at a price of $0.10 consisting of one common share and one half common share purchase warrant exercisable at a price of $0.17 per common share for a period of two years following the close of the offering subject to an acceleration clause.
The proceeds of the offering will be used for mineral exploration and development activities in Newfoundland and to fund working capital. The securities issued will have a four month hold period as per applicable regulations. The financing is subject to TSX Venture Exchange final approval. Insiders purchased 970,000 units. The insider participation is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1) (a) in that the fair market value of the consideration for the securities of the company issued to the insiders does not exceed 25 per cent of the company’s market capitalization.
There were no finder’s fees or commissions payable.
Red Moon Resources Inc. is an industrial minerals company exploring and developing projects in Newfoundland and Labrador.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.
For information please contact:
Patrick J. Laracy, President