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Red Eagle secures equity
Posted on Thursday, 20 April 2017 12:55
Canadian gold and silver miner Red Eagle Exploration is raising up to CAD 20.00 million (USD 14.90 million) as part of its strategy to finance acquisition costs, exploration and development programmes and general corporate purposes.

The business is selling roughly 133.33 million shares, representing an enlarged 26.6 per cent stake in the company, at CAD 0.15 each.

Each unit comprises one common stock and one purchase warrant, which will entitle the holder to snap up one common scrip at CAD 0.25 apiece for a period of 18 months following closing.

Red Eagle has granted the underwriters an overallotment option to acquire up to an additional CAD 3.00 million-worth of units.

The group’s equity dilution is expected to close on or around 12th May 2017, subject to the go ahead from the Toronto stock Exchange.

Vancouver-headquartered Red Eagle is a precious metals exploration and development corporation majority owned by gold producer Red Eagle Mining.

The group, which was formerly known as CB Gold, holds 100.0 per cent of the Vetas Gold, California Gold and Santa Ana Silver projects.

Red Eagle bought an initial 50.4 per cent stake in CB Gold for CAD 4.34 million in 2015, which increased to a 92.0 per cent interest across a number of separate transactions in 2016.

The company’s shares closed down 20.0 per cent to CAD 0.16 yesterday, valuing the firm at over CAD 57.65 million.

Red Eagle posted a net loss of CAD 4.54 million in the 12 months ended 31st December 2016, widened from a loss of CAD 4.10 million in the previous year.

As of 31st December 2016, the group had total assets worth around CAD 23.36 million, compared to CAD 19.90 million on the same date of fiscal 2015.

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