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Red Pine Exploration (TSXV: RPX) announced Tuesday it has closed a private placement of approximately 25.9 million flow-through (FT) units and 82.1 million non-flow-through (NFT) units of the company — both at a price of C$0.035 per unit — for aggregate gross proceeds of C$3.78 million.
Each FT unit comprises one flow-through common share of the company and one-half of one non-flow-through common share purchase warrant. Each NFT unit comprises one common share (issued on a non-flow-through basis) and one whole warrant. A full warrant is exercisable for one common share at a price of C$0.05 per share for a period of 24 months following the offering closing date.
Among the participants of the offering was Toronto-based gold producer Alamos Gold (TSX: AGI), which subscribed for nearly 53 million NFT units for a total investment of C$1.85 million. Alamos now owns 11.1% of Red Pine’s issued and outstanding common shares on an undiluted basis and 19.99% on a partially diluted basis. Alamos did not hold any common shares of Red Pine prior to the offering.
“The addition of Alamos as a strategic investor is a major step in validating the Wawa gold project as a top-tier exploration property,” Red Pine CEO Quentin Yarie commented on the latest investment boost.
The Wawa property — covering 6,519 hectares within McMurray Township, approximately two kilometres southeast of Wawa, Ontario — has hosted numerous gold mines with past production of over 120,000 ounces. A recent technical report pegs indicated resources at 1.2 million tonnes grading 5.31 grams gold per tonne for 205,000 ounces of gold.
The project is 60% owned by Red Pine, with Citabar LP holding the remaining 40% interest.
