Redzone Announces Appointment of Director and Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 4, 2017) -
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RedZone Resources Inc. (TSX VENTURE:REZ)(OTC:REZZF) ("the Company" or "Redzone") is pleased to provide the following corporate update and announce a private placement as follows:
Board of Directors Appointment
The Company is pleased to announce the appointment of Cameron Bell to its Board of Directors. Cameron Bell, M.Sc., P. Geo, has over 30 years' experience working as a geologist and exploration manager. He was a Regional Exploration Manager for Vale from 2007 to 2016, with periods as North American Manager and Australasia Manager. Prior to that, he worked with Inco Technical Services where he was responsible for project generation and managing their grass roots nickel exploration in North America. Additionally, he held the role of Senior Geologist at Voisey's Bay and Sudbury. Michael Murphy commented "We are delighted that Mr. Bell has accepted our offer to join the board of Redzone Resources. Mr. Bell brings extensive exploration experience in both the managing of exploration programs and the sourcing of new projects to the Company and we look forward to his input as we explore the Fortner and Boyd Lithium property and look for additional opportunities in the future."
Private Placement
The Company intends to complete a non-brokered private placement of up to 6,250,000 units (the "Units") at a price of $0.16 per Unit for gross proceeds of up to $1,000,000 (the "Private Placement"). Each Unit will consist of one Common Share and one half of one Common Share purchase warrant exercisable at $0.24 for a period of 24 months from the date of issuance. The Company will have the option to force the conversion of the Warrants should the closing price at which the Common Shares trade equal or exceed $0.40 for 20 consecutive trading days following the date that is four months and one day after the date of issuance of the Warrants, to the date which is 30 days following the date a news release is issued by the Company announcing the reduced term of the Warrants. Any Warrants not exercised on or before such 30th business day will expire and will no longer be exercisable to acquire Common Shares. Finders' fees may be paid by the Company in conjunction with the completion of the Private Placement in accordance with applicable laws and stock exchange policies. Michael Murphy, President and CEO, commented: "We are excited about moving forward with further defining the potential at the Company's Fortner and Boyd Lithium project. In addition, with the depth of geological experience that Cam Bell brings together with the funds being raised through the private placement, the Company is better positioned to execute on its growth strategy".
The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange ("TSX-V"). The securities issued pursuant to the Private Placement will be subject to a four month and one day statutory hold period.
Stock Options
The Company has granted 600,000 stock options to purchase common shares of the Company ("Common Shares") to directors at an exercise price of $0.14 per share, expiring on November 30, 2022.
About Redzone
The Company is a mineral exploration company with a focus on metals that make up batteries. The Common Shares are listed on the TSX-V under the ticker symbol "REZ" and more information about the Company is available on its issuer profile on SEDAR at www.sedar.com or at www.redzoneresources.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and/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 the Company, including, but not limited to the potential for gold and/or lithium at any of the Company's properties, the prospective nature of any claims comprising the Lucky Mica claim group or other property interests, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, uncertainty of sample results, timing of future exploration, and the availability of financing upon the terms of the Private Placement or otherwise. 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
Michael Murphy
President and Chief Executive Officer
michael.murphy@redzoneresources.ca