Red Metal Resources Ltd. issued an update on the progress of a recent capital market transaction involving the private placement of equity in the company for a group of institutional investors.
Red Metal Resources has received subscriptions to sell 6.72 million units at a price of $0.30 per unit, and the company will receive gross proceeds of approximately $2.01 million. The company indicated that some members of the management team of Red Metal Resources Ltd. participated in the offering.
Each unit sold comprises one share of the common stock of Red Metal Resources Ltd., and one warrant to purchase common stock at a future date. The warrant entitles the holder to purchase one share of common stock at a price of $0.50 per share for two years after the close of the offering.
Red Metal Resources Ltd. said that the company would use the proceeds to continue exploration drilling activities at the Farellon project, where the company is prospecting for gold and copper on its 2,708 acres of mining claims.
The Farellon project is located in Chile, in the Candelaria Iron Oxide Copper-Gold area, and is near several producing copper and gold mines owned by other companies.
For more information on the company, go to www.redmetalresources.com