Red Moon Potash/Vulcan Minerals Inc. Agree to $500,000 Private Placement
May 26, 2014 (Source: Marketwired) — Red Moon Potash Inc. (“the Company” – “Red Moon”) (TSX VENTURE:RMK) and Vulcan Minerals Inc. (“Vulcan”) (TSX VENTURE:VUL) announce that Red Moon proposes to carry out a non-brokered private placement of 5,000,000 units (the “Units”) at $0.10 per Unit to Vulcan, a related party for proceeds of $500,000 which will be used to fund the Company’s mineral exploration activities in western Newfoundland and general working capital. The Units consist of one common share and one-half of a common share purchase warrant (the “Warrants”), with each full warrant exercisable at a price of $0.25 per common share for a period of two years. The shares will have a four month hold period as per applicable securities law. The financing is subject to final TSX Venture Exchange approval. Assuming the placement closes Vulcan will own 65.12% of the outstanding common shares of Red Moon or 67.03% if the warrants are exercised (without further dilution).
The company has received permitting approval for a two hole drill program to delineate the salt and potash discovery in the Captain Cook area of western Newfoundland. Drilling bids are currently being evaluated for an anticipated summer drill program. The proceeds from the proposed financing will be specifically used to finance the drill program. The company also graciously acknowledges that, in relation to its 2013 drill program, it has received a $100,000 grant pursuant to the Junior Exploration Assistance Program sponsored by the provincial government.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.
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Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>