Redcorp Ventures Ltd.

Redcorp Ventures Ltd.

July 10, 2007 09:44 ET

Redcorp Announces Closing of $252 Million Debt and Equity Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2007) -


Further to its previously announced (May 25, 2007 and June 26, 2007) offering (the "Offering"), Redcorp Ventures Ltd. ("Redcorp") (TSX:RDV) is pleased to announce the escrow conditions were met and, as a result, Redcorp issued 141,975 Series D Units at a price of $1,000 per Series D Unit for total gross proceeds to the Company of $141,975,000 and 220,022,650 Series E Units at a price of $0.50 per Series E Unit for total gross proceeds to the Company of $110,011,325 (in each case including securities issued pursuant to the partial exercise of an over-allotment option as discussed below).

Each D Unit is comprised of a senior secured redeemable $1,000 principal amount series D note (a "Series D Note") and 320 Redcorp common shares. The Series D Notes will bear interest at a rate of 13% per annum, payable semi-annually in arrears, and will mature on July 11, 2012. The Series D Notes are direct secured obligations of Redcorp, ranking senior to all existing and future indebtedness.

Each E Unit is comprised of one common share of Redcorp and one-half of one common share purchase warrant. Each whole common share purchase warrant (a "Warrant") is exercisable for the purchase of one common share of Redcorp (a "Warrant Share") at a price of $0.65 per Warrant Share until July 10, 2009, subject to the right of Redcorp to accelerate the expiry date of the Warrants after the first anniversary of the closing of the Offering if the volume weighted average price of the common shares of Redcorp on the TSX is greater than $1.50 for 20 consecutive trading days.

The Offering was led by Paradigm Capital Inc. and included Canaccord Capital Corporation, Dundee Securities Corporation, Octagon Capital Corporation, Blackmont Capital Inc. and MGI Securities Inc. (collectively, the "Agents").

As part of the Offering, the Agents exercised the over-allotment option, in part, for an additional 1,975 D Units and an additional 20,022,650 E Units.

Pursuant to the terms of the Offering, an amount equal to the first four interest payments to be made by Redcorp under the Series D Notes has been deposited in trust for the benefit od the holders of the Series D Notes.

The net proceeds from the Offering will be used for development and construction through to production of the Tulsequah Project and for exploration and working capital. The Tulsequah Project is focused on the construction of a new mine at the Tulsequah Chief Deposit in northwest British Columbia to produce zinc, copper and lead concentrates with significant gold and silver by-product. The mine requires a pre-start up capital investment of $201.5 million, including a contingency of $21.4 million.

Redcorp Ventures Ltd. is a Vancouver-based mineral exploration and development company with active projects in British Columbia and Portugal. Further information on Redcorp and the Tulsequah property can be obtained on the Company's website at and at Redfern's website at or by calling toll-free to Troy Winsor, Manager of Investor Relations, at 1-888-225-9662.

This news release is not for distribution to United States newswire services or for dissemination in the United States. The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. This includes statements concerning the Company's plans at its Tulsequah Project and other mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, contractor's costs, remote site transportation costs and materials costs for future remediation. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

News Release 07-27

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