Redzone Resources Ltd. Completes First Tranche of Private Placement Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 18, 2017) -
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Redzone Resources Ltd. ("Redzone" or the "Company") (TSX VENTURE:REZ) announces that it has completed the first tranche of its previously announced non-brokered private placement (the "Offering") pursuant to which it issued an aggregate of 4,166,250 units ("Units") at a price of $0.16 per Unit to raise aggregate gross proceeds of $666,600. Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one share purchase warrant, with each whole share purchase warrant entitling the holder to acquire one additional Common Share at an exercise price of $0.24 for a period of two years, subject to acceleration in the event that the closing price of the Common Shares is equal to or exceeds $0.40 at any time following the date which is four months and one day after closing, all in accordance with the terms of the certificates representing such share purchase warrants. Insiders of Redzone purchased 1,031,250 Units in the first tranche of the Offering. The Offering remains subject to the receipt of final regulatory approvals. All securities issued and issuable in the first tranche of the Offering are subject to a statutory hold period expiring on September 19, 2017.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Redzone, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the availability of financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Contact
Redzone Resources Ltd.
Michael Murphy
President and Chief Executive Officer
michael.murphy@redzoneresources.ca