Vancouver, British Columbia--(Newsfile Corp. - February 20, 2020) - Ridgestone Mining Inc. (TSXV: RMI) (OTCQB: RIGMF) ("Ridgestone Mining") is pleased to announce the closing of the first tranche (the "First Tranche") of the non-brokered private placement (the "Private Placement") announced on February 4th, 2020. The Company issued a total of 4,748,347 units (each a "Unit") at a price of $0.15 per Unit for gross proceeds of $712,252.05.
Jonathan George, CEO comments: "We are excited to have closed this first tranche of the private placement, which allows us to secure and finalize our upcoming maiden drill program on our Rebeico project's New Year zone, where high-grade gold has been encountered. We anticipate the mobilization of our drilling contractor at the beginning of next month and the commencement of the program shortly thereafter. Our initial program will comprise 14 shallow holes to target near-surface mineralization over a 2.2-hectare area where rock-chip samples returned up to 12.95 g/t gold and 0.65% copper."
In connection with the First Tranche of the Private Placement, the Company has paid an aggregate of $22,319.96 in cash finders' fees plus issued a total of 148,800 share purchase warrants (the "Finders' Warrants") to purchase 148,800 common shares. The Finders' Warrants are non-transferable and will have the same terms as the Warrants forming part of the Units. The Unit Shares, Warrants and Finder's Warrants are subject to a hold period until June 19th, 2020. The Private Placement remains subject to final acceptance by the TSX Venture Exchange. The Company intends to use the net proceeds of the Private Placement to fund the upcoming exploration program at its Rebeico project in Mexico and for general working capital purposes.
Private Placement Unit Details
Each Unit of the Private Placement consists of one common share and one-half of a common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.30 for 12 months following closing of the Private Placement. The Warrants will be subject to an acceleration clause in the event the closing price of the Company's common shares on the TSX Venture Exchange is greater than $0.45 for ten consecutive trading days (the "Acceleration Event"). The Company will give notice to the holders of the Acceleration Event and the Warrants will expire ten days thereafter. The Company anticipates that the second and final tranche of the Private Placement will close in the coming days.
About Ridgestone Mining Inc.
Ridgestone is a TSX Venture Exchange-listed junior mineral exploration company with offices in Taipei and Vancouver, B.C. The Company's focus is on precious metals and copper in Sonora, Mexico, and specifically the Rebeico Gold-Copper project.
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This news release contains forward-looking statements or information (collectively referred to herein as "forward-looking statements"). Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. In this news release such statements include but are not limited to any ongoing drilling programs or exploration results, or any results from the MarketSmart program. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including those described in the Company's regulatory filings available on www.sedar.com. Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company's course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this news release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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