Red Eagle Mining Corporation (TSX/BVL: R; OTCQX: RDEMF), a gold producer from its Santa Rosa Gold project, has closed its previously announced bought deal financing of 23,000,000 common shares, including 3 million share issued pursuant to full exercise of overall-allotment option, at $0.75 per share for gross proceeds of $17,250,000.
The offering was underwritten by a syndicate of underwriters led by BMO Capital Markets and including National Bank Financial Inc. Farris, Vaughan, Wills & Murphy LLP and Blake, Cassels & Graydon LLP acted as legal counsel to Red Eagle Mining and underwriters respectively.
Proceeds will be used to advance exploration of the Santa Rosa Gold Project and for working capital purposes.
Red Eagle Mining owns 100% of the Santa Rosa Gold Project where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls CB Gold which owns 100% of the California Gold, Vetas Gold, and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
photo credit: Red Eagle Mining