Red Pine Exploration Inc.
TSX VENTURE : RPX

Red Pine Exploration Inc.

February 22, 2011 08:09 ET

Red Pine Exploration Announces Completion of Private Placement

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2011) - Red Pine Exploration Inc. ("Red Pine" or the "Company") (TSX VENTURE:RPX) announces the closing of the final tranche of its previously announced non-brokered private placement (the "Offering") for total gross proceeds of $1,090,000. Proceeds from the current tranche totalled $740,000.

Pursuant to the Offering, the Company issued an aggregate of 10,900,000 units (the "Units") at a price of $0.10 per Unit. Each Unit is comprised of one "flow-through" common share and one half of one non-flow through common share purchase warrant. Each full warrant entitles the holder to purchase one common share of the Company for $0.25 per share and expires 24 months from the date of closing.

In respect of this tranche of the Offering, the Company paid broker fees in the form of cash compensation of $31,500 and issued 315,000 non-transferable compensation options, with each such option entitling the holder to acquire one Unit at a price of $0.10 per Unit for a period of 24 months following closing.

All securities issued pursuant to the Offering are subject to a restricted period of four months and one day. The Offering is subject to receipt of final approval from the TSX Venture Exchange.

As part of the Offering, a total of 4,500,000 Units were sold to the MineralFields Group. In addition, 1,850,000 Units were issued to related parties of the Company.

The Company intends to use the proceeds of the Offering to further its exploration expenditures on its properties in the Timmins Region of Ontario.

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

About Red Pine's SaraCourt Property

The SaraCourt Property is a regional land package of contiguous, high-potential gold properties totaling approximately 28,000 hectares of patented and unpatented mining lands.

Located in and along the newly defined DZ3 Gold Deformation Corridor, the Property holds a series of deformation zones and regional fault branches that host abundant gold showings and join the Destor-Porcupine Deformation Zone to the northeast, and join to the western extension of the Larder Lake Deformation Zone fault that branches to the southwest.

The Destor-Porcupine Fault Zone is spatially associated with gold deposits in the Timmins-Porcupine Gold Camp that have produced more than 65 million ounces gold to date. 

Administration

A total of 1,700,000 stock options were issued to consultants of the Company on February 18, 2011 under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last Annual General Meeting of Shareholders of the Company held on January 27, 2011. The options are exercisable at a price of $0.10 per share for a period of five years and are subject to a four-month and one day hold period from the date of the issuance.

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Cautionary Statement: Neither 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.

Contact Information

  • Red Pine Exploration Inc.
    Brent Nykoliation
    Vice President of Business Development
    (416) 364-7024
    (416) 364-2753 (FAX)
    bnykoliation@redpineexp.com
    or
    Red Pine Exploration Inc.
    Kirk McKinnon
    President & CEO
    (416) 364-7024
    (416) 364-2753 (FAX)
    or
    Red Pine Exploration Inc.
    Richard Schler
    Chief Operating Officer & CFO
    (416) 364-7024
    (416) 364-2753 (FAX)
    www.redpineexp.com