Zinc explorer raises $18 million. Looks good for a junior zinc explorer....
Red Dragon Resources Corp. - $18,600,000 million private placement completed
VANCOUVER, Jun 16, 2006 (Canada NewsWire via COMTEX News Network) --
/NOT FOR DISSEMINATION IN THE USA OR THROUGH US NEWSWIRE SERVICES/
Red Dragon Resources Corp. (the "Company") (TSXV: DRA) is pleased to announce that it has closed a portion of its previously announced brokered private placement led by Regent Mercantile Bancorp Inc. (the "Agent") (refer to news release dated May 29, 2006). A total of 24,800,000 units ("Units") were issued at a price of $0.75 per Unit for total gross proceeds of $18,600,000 (the "Offering"). Each Unit consists of one common share of the Company and one-half of one share purchase warrant, with each whole warrant ("Warrant") being exercisable for the purchase of an additional common share of the Company at a price of $1.25 per share until December 15, 2007, subject to acceleration of the expiry date in certain circumstances.
In consideration for its services, the Agent received a cash commission of $830,477 together with an advisory services fee of $378,523 and compensation and advisory warrants entitling the Agent to purchase an aggregate of up to 1,736,000 Units at a price of $0.75 per Unit until December 15, 2007.
The net proceeds from the Offering will be used to further develop the Company's key projects, and for general working capital purposes. In particular the Company will be focusing a significant portion of the funding on the Weixi zinc project located in Yunnan Province, southwestern China. Recent trench results returned values of 10.7% zinc and 1.16% lead over 24 metres within a zone which can be followed intermittently along surface for over two kilometres. (refer press release May 2, 2006, No 07/06). An aggressive drilling program is planned to advance this project. In addition drilling will be undertaken on the Liaoning gold project in northeastern China.
All securities issued or issuable in connection with the Offering are subject to a four month hold period expiring on October 16, 2006.
The Company is a mineral exploration company actively involved in base and precious metal and uranium exploration in Canada and China. |
