Ruby Red Resources Inc.

Ruby Red Resources Inc.

October 11, 2007 23:59 ET

Ruby Red Completes Brokered Financing



Ruby Red Resources Inc. ("Ruby Red") (TSX VENTURE:RRX) announces that it has completed its previously announced brokered financing (the "Offering") by way of a Short Form Offering Document in accordance with the policies of the TSX Venture Exchange. Northern Securities Inc. ("Northern") acted as lead agent in connection with the Offering.

An aggregate of 2,840,000 units ("Units") of Ruby Red were issued at a price of $0.70 per Unit for gross proceeds of $1,988,000. Each Unit consisted of two common shares issued on a "flow-through" basis, one common share and two non-transferable common share purchase warrants of Ruby Red. Each warrant entitles the holder to purchase one additional common share of Ruby Red at a price of $0.35 per share for a period of 24 months from the closing of the Offering. The net proceeds from the offering will be used to fund Ruby Red's exploration, development and acquisition programs as well as for general corporate purposes.

Of the 8,520,000 common shares of Ruby Red issued pursuant to the Offering, a total of 2,988,510 common shares are subject to a four month hold period expiring on February 12, 2008.

Northern received a commission equal to 10% of the gross proceeds received by Ruby Red from sales of Units pursuant to the Offering. In addition, Northern and its sub agents also received agent's options to acquire an aggregate of 284,000 units ("Agent's Units"), exercisable at price of $0.70 per Agent's Unit for a period of 24 months from the closing of the Offering. Each Agent's Unit is comprised of three common shares and two non-transferable common share purchase warrants of Ruby Red, with each such warrant entitling the holder to purchase one common share of Ruby Red at a price of $0.35 per share for a period of 24 months from the closing of the Offering.

Ruby Red was formed to participate in the acquisition, exploration and development of mineral claims in the Fort Steele Mining Division of British Columbia for the purpose of exploring for precious and base metals. Ruby Red holds 100% working interests in 135 mineral claims (approximately 40,000 hectares), all located within 35 kilometres of Cranbrook, B.C. in the Purcell and Rocky Mountains. Exploration results to date have been very encouraging and Ruby Red will continue to focus its efforts on its expanded exploration program for the balance of 2007.

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include but are not limited to risks inherent in the mining industry, regulatory and economic risks, and risks associated with the company's ability to implement its business plan. The company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • Ruby Red
    Randall Tronsgard
    Vice-President, Corporate Development
    (403) 770-1346