Red Tiger Increases Size and Pricing of Private Placement
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TORONTO, May 24, 2012 /CNW/ - Red Tiger Mining Inc., (TSXV: RMN), (the "Company") announces that it has amended the terms of its previously announced non-brokered private placement (the "Offering"). The Offering is for gross proceeds of up to $3,000,000. Of the gross proceeds, approximately $2,000,000 has been subscribed for by insiders of the Company ("Insiders"), and the balance, which has not yet been subscribed for, is reserved for non-Insiders. The purpose of the additional balance is to allow arm's length investors to participate in the Offering and to provide the Company with additional cash reserves at this time of production start-up.
The Offering consists of up to 5,454,545 units of the Company (each, a "Unit"), at a price of $0.55 per Unit (up from $0.48 per Unit as was initially announced). Each Unit consists of one common share of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"). Each Warrant may be exercised to acquire one additional Common Share at a price of $0.75 for a period of three years from the closing of the Offering. No commission or finder's fee will be paid in connection with the Offering.
The Offering is subject to the approval of the TSX Venture Exchange ("TSXV"). Securities issued pursuant to the Offering will be subject to a hold period of four months and a day from the date of issuance of the securities.
As Insiders will participate in the Offering, any such subscriptions will be considered to be related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such Insider participation.
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 or accuracy of this release.
This news release contains forward-looking statements, which are subject to risks and uncertainties and other factors that may cause the Company's results to differ materially from expectations. Specifically, this news release contains forward-looking information regarding the carrying out of the Offering and the expected terms relating thereto, the participation in the Offering by Insiders, the availability of, and the Company's reliance upon, certain exemptions from applicable securities law and/or TSXV requirements, and the approval of the Offering by the TSXV. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this news release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
SOURCE Red Tiger Mining Inc.
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Red Tiger Mining Inc.
20 Toronto Street, 12th Floor, Toronto ON, M5C 2B8, Canada
Fax: 416 367 3638
info@redtigermining.com
www.redtigermining.com
Dr. Thomas Utter
President and CEO
Tel.: +1 526623118839
thomasutter@gmx.net
Frank van de Water
CFO and Secretary
Tel.: 416 869 0772
fvandewater@on.aibn.com