Red Metal
Resources Private Placement Oversubscribed with Lead
by AlphaNorth
Asset
Management as Outlook
for Copper Soars
June 23,
2021 -- InvestorsHub NewsWire -- via
BioResearch Alert --
-
Red Metal
Resources owns large mining claims for copper, gold and cobalt in
historical rich copper producing regions in Chile which is by far
the world's largest producer of copper. Previous
extensive
drilling
shows great potential for economic
copper, gold and cobalt
-
Goldman Sachs says "copper is
the new oil and Chile is the Saudi Arabia of
copper" – Goldman also predicts
copper prices will soar through 2030 - Kitco forecast $15
per pound copper. Outlook for gold and cobalt
is also bullish
-
Proceeds from
Private Placement with lead order
by star
performing AlphaNorth
Asset
Management will commence further drilling and assays
to outline
possible resources in the
ground which could dramatically
impact Red Metal Resources valuations
-
Red Metal
management is heavily experienced with larger mining companies and
exploration
-
Red Metal current
share price is $.366 with small market cap of
approximately $16.53 million U.S. dollars and a
very small float estimated to be approximately
4 million
shares
In a recent report
titled
'Copper is the new oil', Goldman Sachs estimates
prices will average $11,000 a ton, over the next 12 months, but
by 2025 could hit $15,000/ton or $7.50 per pound. Citi Bank sees copper
reaching $12,000/ton or $6.00 per pound
next year while
KITCO believes copper may hit
$15 per pound before
2030. Clearly, the experts
believe copper prices are headed much higher.
Red Metal Resources Ltd. (RMES:
OTC) owns large mining claims in an historically rich copper
producing area in Chile and also has previous drilling results
indicating significant
showings of copper, gold and
cobalt.
The mining claims are at favorable lower elevations and are close
to roads and utilities and seawater.
Red Metal management is
heavily
experienced and has developed plans for
the next round of drilling to outline the potential resources in the ground.
Drilling and accompanying assays are expected to commence soon and
if successful, could increase Red Metal valuations
dramatically.
The biggest challenge to
commencing drilling operations has been raising the capital
necessary to pay for the program but the company
recently
announced that it has successfully
closed the second round which was oversubscribed. Another bullish
note is that the lead investor is a well-known and star-performing
fund named, AlphaNorth
Asset
Management.
Red Metal Resources
Ltd.
announced
that it has
closed its oversubscribed non-brokered private placement of
6,460,872 subscription receipts at a price of $0.15 per
subscription receipt (each, a "Subscription
Receipt"), previously announced on
February 17, 2021 for gross proceeds of $969,131 (the
"SR
Offering"). Further to the news
release dated May 19, 2021 announcing the closing of the unit
offering (the "Unit
Offering"), with a lead order
from AlphaNorth
Asset
Management, the Company has raised
aggregate gross proceeds of $1,546,581.2 in total through the SR
Offering and the Unit Offering combined.
In connection with the SR
Offering, the Company entered into a subscription receipt agreement
with Computershare Trust Company dated June 15, 2021 (the
"SR
Agreement") pursuant to which the
proceeds of the SR Offering (the "Escrowed
Funds")
have been deposited in escrow. The Escrowed Funds will be held in
escrow pending satisfaction of the escrow release conditions in
full pursuant to the terms of the SR Agreement (the
"Escrow
Release Conditions"), including but not limited
to the Company completing the listing of its common shares on a
recognized stock exchange in Canada. Upon satisfaction of the
Escrow Release Conditions (the "Escrow
Release Date"), the Escrowed Funds, after
deducting certain finder's fees payable in connection of the SR
Financing, will be released to the Company and
each Subscription Receipt will be automatically converted without
any further action on the part of the holder thereof into one SR
Unit (as defined below).
In connection with the SR
Offering, the Company agreed to pay finders fees to certain
registered broker dealers payable on the Escrow Release Date
consisting of: (1) a cash commission in an amount equal to 7% of
the gross proceeds raised from subscribers to the SR Offering who
were introduced by such finders, and (2) finders warrants in an
amount equal to 7% of the number of Subscription Receipts purchased
by subscribers introduced by such finders to the Company (the
"Finder's
Warrants"). The Finder's Warrants
will be on the same terms as the SR Warrants as defined
below.
Each SR Unit will consist of
one common share of the Company and one common share purchase
warrant (each a "SR
Warrant"). Each SR Warrant will
entitle the holder thereof to purchase an additional common share
of the Company at a price of CAD$0.30 per common share, if
exercised during the first year following the Escrow Release Date,
and at a price of CAD$0.60, if exercised during the second year
following the Escrow Release Date. Pursuant to the terms of the SR
Offering, in the event that the Company does not meet the Escrow
Release Conditions by September 30, 2021 (or such later date as may
be agreed to by the Company), the escrow agent shall return to the
holders of the Subscription Receipts an amount equal to the
aggregate purchase price paid for the Subscription Receipts held by
each holder, and each Subscription Receipt shall be cancelled and
be of no further force or effect. The SR Units and all underlying
securities to be issued pursuant to the SR Offering will be subject
to a four-month hold period under applicable Canadian securities
laws.
The proceeds of the SR
Offering are intended to be used to advance Red Metal's
flagship Carrizal copper-gold-cobalt property
in Atacama, Chile and for working capital purposes.
Caitlin Jeffs, P.
Geo., President
and CEO of the Company, commented, "We are extremely pleased to
have closed this upsized financing. The over-subscription attests
to the quality of not only our project, but also our team. We
welcome all as new shareholders of Red Metal and look forward to a
safe and prosperous 2021."
The
securities referred to herein will not be or have not been
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration requirements.
Conclusion
Red Metal Resources owns
substantial claims of properties associated
with copper, gold
& cobalt that are indicated by extensive drilling results and
43-101 filings. Copper, gold and cobalt prices are
rising with copper
projected to
continue to experience continued and prolonged strong demand until
at least 2030 and gold and cobalt rising
for the foreseeable future. An aggressive drilling
program planned for 2021 and 2022 is now funded and
expected to
outline the expanded potential of the full property and add
significant value to today's market capitalization of Red Metal
Resources. If future assays are as successful as previous
drilling results, the share price of RMES has
the potential to increase proportionately. Red Metal Resources
appears to be very well positioned as soon upcoming drilling results are known
and reported.
About
AlphaNorth
Asset
Management
AlphaNorth
Asset Management
is a Toronto based investment manager. AlphaNorth
believes that
superior long term equity returns are achievable by exploiting
inefficiencies in the Canadian small cap universe through careful
security selection. The firm combines technical analysis with both
a bottom-up and top-down strategy in the selection of investments
offering the best reward versus risk opportunities.
About Red
Metal Resources Ltd.
Red Metal Resources is a
mineral exploration company focused on aggressive growth through
acquiring, exploring and developing copper-cobalt-gold assets in
Chile. The Company's projects are located in the prolific
Candelaria iron oxide copper-gold (IOCG) belt of Chile's coastal
Cordillera. Red Metal is quoted on the OTC Link alternative trading
system on the OTC Pink marketplace under the symbol
RMES.
For more
information, visit www.redmetalresources.com.
Contact:
Red Metal
Resources Ltd.
Caitlin
Jeffs, P.Geo, CEO
807.345.7384
www.redmetalresources.com
Cautionary Note Concerning Forward-Looking Information
This press
release contains forward-looking information. All statements, other
than statements of historical fact, that address activities, events
or developments that the Company believes, expects or anticipates
will or may occur in the future (including, without limitation,
statements regarding the use of proceeds of the Unit Offering and
SR Offering, mineral resource estimates, drill targets, exploration
results, future drilling and other future exploration, potential
gold discoveries and future development) are forward-looking
information. This forward-looking information reflects the current
expectations or beliefs of the Company based on information
currently available to the Company. Forward-looking information is
subject to a number of risks and uncertainties that may cause the
actual results of the Company to differ materially from those
discussed in the forward-looking information, and even if such
actual results are realized or substantially realized, there can be
no assurance that they will have the expected consequences to, or
effects on the Company. Factors that could cause actual results or
events to differ materially from current expectations include,
among other things, the possibility that planned drilling programs
will be delayed, uncertainties relating to the availability and
costs of financing needed in the future, activities of the Company
may be adversely impacted by the continued spread of the recent
widespread outbreak of respiratory illness caused by a novel strain
of the coronavirus ("COVID-19"), including the ability of the
Company to secure additional financing, risks related to the
exploration stage of the Company's properties, the possibility that
future exploration (including drilling) or development results will
not be consistent with the Company's expectations, failure to
establish estimated mineral resources, changes in world gold,
copper markets or equity markets, political developments in Chile,
fluctuations in currency exchange rates, inflation, changes to
regulations affecting the Company's activities, delays in obtaining
or failure to obtain required project approvals, the uncertainties
involved in interpreting drilling results and other geological data
and the other risks disclosed under the heading "Risk Factors" and
elsewhere in the Company's annual report on Form 10-K filed on
SEDAR at www.sedar.com and
EDGAR at www.sec.gov.
Forward-looking information speaks only as of the date on which it
is provided and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking
information, whether as a result of new information, future events
or results or otherwise. Although the Company believes that the
assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.
BioResearchAlert
has been
compensated for this article. For
further information, please visit our website at www.redmetalresources.com
Source:
BioResearch Alert