Ridgemont Closes $6M Financing
Ridgemont Iron Ore Corp. (TSX-V: RDG) has announced that it has closed its previously announced non-brokered private placement offering of units and flow-through common shares.
Specifically, Ridgemont raised aggregate gross proceeds of approximately $6,000,000 through the issuance of 3,016,666 Units at a price of $0.90 per Unit and 3,285,000 FT Shares at a price of $1.00 per FT Share. Each Unit consists of one common share and one half of one common share purchase warrant. Each Warrant shall be exercisable to acquire one common share at an exercise price equal to $1.25 until March 14, 2013. Each FT Share qualifies as a “flow-through share” for the purposes of the Income Tax Act (Canada).
At any time after July 15, 2011, if the volume weighted average trading price of the common shares of Ridgemont on the TSX Venture Exchange is greater than $2.00 per share for 20 consecutive trading days, Ridgemont may give written notice to warrant holders that the Warrants will expire 20 calendar days after the date of such notice.
The funds raised from the Unit portion of the Offering will be used by Ridgemont for exploration expenditures on its properties and for general corporate and working capital purposes. The funds raised from the FT Share portion of the Offering will be used by Ridgemont for exploration expenditures on its properties, which will constitute Canadian exploration expenditures (as defined in the Income Tax Act (Canada)) and will be renounced for the 2011 taxation year.
Ridgemont paid finder’s fee on certain subscriptions equal to 5% of the gross proceeds received from such subscriptions, a portion of which was paid in 146,944 Units at the election of the finder. Ridgemont also issued 306,804 non-transferrable finder’s warrants (“Finder’s Warrants”). Each Finder’s Warrant may be exercised for one common share of Ridgemont at an exercise price of $1.00 per Finder’s Warrant until March 14, 2013.
All securities issued in the Offering are subject to a statutory four month hold period expiring on July 15, 2011.
The securities being offered hereby have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or province in which such offer, solicitation or sale would be unlawful.
Ridgemont is an exploration and development company in Canada and has an option to acquire up to 75% interest in the Redford iron ore property located 22 kilometres northeast of Ucluelet, in the Alberni Mining Division, Vancouver Island, British Columbia.
Posted March 15, 2011
