Redstar Gold (RGC-V) Sept 13, '16 is pleased to announce that, further to its news release dated August 22, 2016, the Company has closed its non-brokered private placement of 41,000,000 shares ("Shares") at a price of CDN$0.10 per share to raise gross proceeds of CDN$4,100,000 (the "Financing").
The Company appreciates the positive response from the markets and strong investor interest in the Financing, which was oversubscribed, but in order to minimize any additional dilution, the Financing was capped at 41,000,000 Shares, as previously announced.
Eric Sprott acquired 9.6 million Shares pursuant to the Financing and together with other purchases of Shares, Mr. Sprott now holds approximately 11.6% of the issued and outstanding common shares of the Company on a non-diluted basis. The above percentages are calculated based on 259,763,296 common shares issued and outstanding after giving effect to the Financing. Prior to the Financing, Mr. Sprott owned 20.4 million Shares of the Company representing approximately 9.3% of the issued and outstanding common shares of the Company on a non-diluted basis.
"I would like to welcome Mr. Sprott as one of Redstar's largest shareholders and newest strategic investor. The Company can now make plans to initiate drilling up at our 100% controlled Unga Gold Project in Alaska," commented Peter A. Ball, President & CEO of Redstar Gold.
The proceeds from the Financing will be used to continue to progress the Unga Gold Project with additional drilling, continuing and expanding exploration across other known gold zones, complete a NI 43-101 Technical Report, and for general corporate purposes.
The Company paid finders' fees totalling CDN$48,000 and 480,000 broker warrants. Each whole warrant can be exercised into one common share of Redstar at a price of CDN$0.20 per share for a period of 2 years from closing. The private placement is subject to the approval of the TSX Venture Exchange and the securities will be subject to a four month and one day hold period under securities laws.
Mr. Sprott is acquiring the shares for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional Shares either on the open market or through private acquisitions or sell the Shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Mr. Sprott's early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).
Shumagin Gold Zone
The Shumagin prospect is characterized by multi-episodic gold-silver bearing quartz-adularia-rhodochrosite breccia bodies that occur within structurally controlled dilation zones along the >1,200-meter-long Shumagin Scarp. High-grade gold-silver mineralization is open at depth within the main breccia body at Shumagin. Multiple dilation zones and coincident gold-silver bearing breccia bodies exist along strike of the Shumagin Scarp and remain to be fully drill tested.
About The Unga Gold Project
The 100% controlled Unga Gold Project covers key strategic portions of adjacent Unga and Popof Islands, approximately 900 kilometers southwest of Anchorage, Alaska. Redstar controls a 240 square kilometer land package that is host to numerous structurally controlled, volcanic hosted intermediate-sulfidation epithermal high-grade vein, breccia, stockwork and disseminated gold-silver occurrences.
The Unga Project has excellent infrastructure, including direct daily flights from Anchorage, a deep-sea port and a temperate climate. The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka Trend, was Alaska's first underground gold mine and the site of historic high-grade gold production.
Selected drill highlights from the Shumagin Gold Zone:
Hole#
| From
(meters)
| To
(meters)
| Length 1
(meters)
| Gold Grade
(g/t)
| Silver Grade
(g/t)
| DDH-26
| 49.07
| 49.83
| 0.76
| 37.7
| 20.6
| DDH-28
| 44.81
| 46.02
| 1.22
| 16.5
| 55.5
| DDH-35
| 77.27
| 77.88
| 0.61
| 192.6
| 5403.4
| DDH-42
| 132.59
| 134.11
| 1.52
| 30.96
| 35.0
| DDH-46
| 153.62
| 154.84
| 1.22
| 365.35
| 190.6
| DDH-51
| 156.06
| 156.67
| 0.61
| 182.02
| 88.5
| DDH-57
| 38.1
| 39.62
| 1.52
| 59.59
| 50.05
| BMS-01
| 272.8
| 278.28
| 5.49
| 24.02
| 19.4
| 11SH007
| 223.0
| 224.0
| 1.00
| 43.9
| 18.5
| 11SH009
| 210.1
| 211.0
| 0.9
| 43.1
| 37.2
| 11SH010
| 259.25
| 259.8
| 0.55
| 738.0
| 408.0
| 15SH011
| 60.1
| 62.0
| 1.90
| 202.0
| 82.0
| 15SH012
| 64.0
| 66.0
| 2.00
| 35.3
| 209.0
| 15SH012
| 82.0
| 85.0
| 3.00
| 16.95
| 183.0
| 15SH012
| 89.0
| 89.7
| 0.70
| 133.0
| 422.0
| 15SH013
| 144.0
| 145.0
| 1.00
| 17.45
| 122.0
| 15SH013
| 146.0
| 147.0
| 1.00
| 20.9
| 232.0
| 15SH014
| 187.0
| 188.0
| 1.00
| 19.9
| 16.0
| 15SH018
| 196.0
| 197.0
| 1.00
| 41.2
| 130.0
|
*True widths of the mineralized intervals are close to 70-80% of Core Length
**DDH-26, 28, 35, 42, 46, 51, 57 & BMS-01 are historic in nature and are not reported herein as new drill results
**11SH007-010 and 15SH011-018 have been previously disclosed and may be viewed on Redstar's Website at www.redstargold.com/s/NewsReleases.asp
Jesse C. Grady, MSc, CPG-11592, is a Qualified Person as defined by NI 43-101. Mr. Grady has prepared and approved the technical information contained within this release.
About Redstar Gold Corp
Redstar is a junior exploration company focused on high-grade gold exploration in North America. In Alaska, the Company is exploring the 100% controlled high-grade Unga Gold Project. In Nevada, Redstar has signed a Definitive Agreement with NV Gold Corp. to sell its Nevada portfolio and will receive 29.9% of NV Gold and 2 Board Seats at closing and approval of the transaction. Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada.
On Behalf of the Board of Directors,
Peter A. Ball, President and CEO
For additional information please contact:
T: +1.604.245.5861
Toll Free: 877.310.3330
E: pball@redstargold.com |
