Red Moon Potash Inc.: Private Placement
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR -- (Marketwired) -- 05/22/13 -- Red Moon Potash Inc. ("the Company" - "Red Moon") (TSX VENTURE: RMK) announces that it proposes to carry out a non-brokered private placement (the "Offering") for proceeds of $250,000 with Vulcan Minerals Inc., a related party. Under the terms of the Offering, 2,500,000 units (the "Units") will be offered at a price of $0.10 and will consist of one common share and one-half of a common share purchase warrant (the "Warrants"), with each full warrant exercisable at a price of $0.25 per common share for a period of two years following the closing date of the offering. The proceeds of the offering will be used to fund mineral exploration activities in western Newfoundland and general working capital. The shares issued will have a four month hold period as per applicable securities law. The financing is subject to TSX Venture Exchange approval. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws. Vulcan currently owns 57.75% of the outstanding common shares of Red Moon and will own, assuming the financing closes, 60.53% of the issued common shares or 61.78% if the warrants are exercised (without further dilution).
Shares Issued: 35,500,004
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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Red Moon Potash Inc.
Patrick J. Laracy, President
(709) 754-3186
info@redmoonpotash.com
Red Moon Potash Inc.
Gerri A. MacNeil, Business Manager, Investor Relations
(709) 754-3186
info@redmoonpotash.com
www.redmoonpotash.com