Redzone Resources Ltd.

Redzone Resources Ltd.

May 11, 2009 12:16 ET

Redzone Resources Ltd. Announces Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2009) -


Redzone Resources Ltd. (CNSX:REZ) ("Redzone") is pleased to announce that it proposes to complete a non-brokered private placement (the "Offering") pursuant to which it will issue a minimum of 5,000,000 and a maximum of 10,000,000 units ("Units") at a price of $0.40 per Unit to raise aggregate gross proceeds of a minimum of $2,000,000 and a maximum of $4,000,000. Each Unit will consist of one common share of Redzone and one-half of one share purchase warrant of Redzone. Each whole share purchase warrant will entitle the holder thereof to acquire one additional common share of Redzone for a period of 12 months at an exercise price of $0.75 per share. Redzone has agreed to pay a finder's fee equal to up to 6% of the gross proceeds raised in the Offering payable in cash at closing.

Redzone is seeking to acquire advanced exploration stage gold assets. The proceeds of the Offering will be used to fund Redzone's consideration of such opportunities, including due diligence costs, as well as for general corporate expenses.

The Offering remains subject to the receipt of all applicable regulatory approvals.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Redzone, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Redzone Resources Ltd.
    Neil Halldorson
    (604) 562-2582