VANCOUVER, April 14, 2016 /PRNewswire/ - Red Eagle Mining Corporation (TSX-V: RD,OTCQX: RDEMF, SSE-V: RDCL) is pleased to announce a private placement for gross proceeds of $11,281,476, consisting of 29,688,095 common shares (the "Shares") at a price of $0.38 per Share (the "Financing"). Liberty Metals & Mining Holdings, LLC ("LMM"), a subsidiary of Boston based Liberty Mutual Insurance, elected to exercise its participation right and will purchase 9,500,000 Shares which will result in LMM's ownership interest in Red Eagle Mining increasing from 18.0% to 19.9%.
Proceeds will be used for exploration drilling of the Santa Rosa Gold Project and to fund CB Gold Inc.'s 2016 work programme at the Vetas Gold Project. The Financing was priced at market on the date the Financing was agreed. The Shares are subject to a four month hold period from the date of issuance.
About Red Eagle Mining
Red Eagle Mining is a well-financed gold exploration and development corporation with an experienced mine development team. Management is focused on building shareholder value through discovering and developing gold projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining owns 68% of the Vetas Gold Project and 100% of the Santa Rosa Gold Project, where construction is underway at the fully permitted and fully financed San Ramon Gold Mine with production expected to commence in the second half of 2016.
Neither the 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. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
SOURCE Red Eagle Mining Corporation