Red Eagle Mining Shares Begin Trading on an Ex-Rights Basis
Red Eagle Mining Corporation today announced that the company’s common shares will now begin trading on the Toronto Stock Exchange (TSX) on an ex-rights basis. The rights to acquire units of the Vancouver-based mining company, which operates the Santa Rosa gold mining project in Colombia, will now be trading on the TSX under the symbol R.RT.
The company released the following statement in full, in which “Shares” refer to common shares and “Units” refer to units of of Red Eagle Mining.
All Eligible Holders (residents of each of the provinces and territories of Canada, along with all other jurisdictions outside of the United States) as at the close of business on July 5, 2017, has received one right for every common share held. The Notice of Rights Offering and related Rights Certificates are being mailed to all registered holders (excluding shareholders who are resident of the United States, who will receive instructions on how to exercise their Rights). Shareholders who own their Shares through an intermediary, such as a bank or broker, will receive materials and instructions from their intermediary.
For every two Rights the holder will be entitled to subscribe for one Unit at a subscription price of C $0.35 per Unit until August 4, 2017. Each Unit will consist of:
- One Share of Red Eagle Mining; and
- One transferable Share purchase warrant (“Warrant”) exercisable into one Share of Red Eagle Mining at a purchase price of C $0.50 per Share for a period of five years from the issue date. The Warrants will be listed for trading on the TSX subject to fulfilling the TSX minimum listing conditions.
Eligible holders of Rights, who fully exercise their Rights, will be entitled to subscribe, on a pro rata basis with other shareholders who participated in the oversubscription, for Units that have not been purchased under the Rights Offering.
A Rights Offering was chosen to give the opportunity to all existing shareholders to participate. Major shareholders Liberty Metals & Mining Holdings, LLC, Vertex Value Fund and Orion Mine Finance have informed Red Eagle Mining that they intend to fully exercise their Rights, which will result in gross proceeds to Red Eagle Mining from these shareholders of approximately C $16 million under the Rights Offering.
Photo: Red Eagle Mining operates the Santa Rosa Gold Project in Colombia. (Credit: Red Eagle Mining)