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TORONTO, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Red Pine Exploration Inc. (TSXV:RPX, OTCQB:RDEXF) ("Red Pine" or the "Company") is pleased to announce that it has entered into an amendment agreement with Haywood Securities Inc. ("Haywood"), as co-lead underwriter and sole bookrunner, on its own behalf and on behalf of Research Capital Corporation, as co-lead underwriter (together with Haywood, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a "bought deal" private placement basis, (i) 22,223,000 common shares (the "Non-FT Shares") of the Company at a price of C$0.090 per Non-FT Share (the "Non-FT Issue Price"), and (ii) any combination of (A) tranche 1 flow-through shares (the "Tranche 1 FT Shares") of the Company at a price of C$0.105 per Tranche 1 FT Share (the "Tranche 1 FT Issue Price"), and (B) tranche 2 flow-through shares (the "Tranche 2 FT Shares" and together with the Non-FT Shares and Tranche 1 FT Shares, the "Offered Shares") of the Company at a price of C$0.126 per Tranche 2 FT Share (the "Tranche 2 FT Issue Price"), such that the aggregate gross proceeds to the Company equal at least C$9,565,529 (the "Upsized Offering").
The Company has granted the Underwriters an option to purchase up to an additional 15% of the Upsized Offering in any combination of (i) Non-FT Shares at the Non-FT Issue Price, (ii) Tranche 1 FT Shares at the Tranche 1 FT Issue Price, and (iii) Tranche 2 FT Shares at the Tranche 2 FT Issue Price (the "Underwriters' Option"), exercisable in whole or in part at any time up to 48 hours prior to the closing date.
The gross proceeds from the sale of Tranche 1 FT Shares and Tranche 2 FT Shares will be used by the Company to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Company's projects in Ontario. All Qualifying Expenditures will be renounced in favour of the subscribers of the Tranche 1 FT Shares and Tranche 2 FT Shares effective December 31, 2024. The net proceeds ...
