Red Hut Completes its Prospectus Offering and Lists on the TSX Venture Exchange
N E W S R E L E A S E
Red Hut Completes its Prospectus Offering and Lists on the TSX Venture Exchange
December 11, 2012 TSXV Symbol: ROB
Vancouver, British Columbia. Red Hut Metals Inc. (the “Company”) is pleased to announce that pursuant to its prospectus (the “IPO Prospectus”) dated November 5, 2012, it has: (a) completed its initial public offering (“IPO”) of 2,000,000 common shares at a price of $0.15 per Share, for aggregate gross proceeds of $300,000; and (b) completed the distribution of 3,150,000 common shares issued upon the conversion of 3,150,000 previously issued special warrants qualified under the IPO Prospectus.
The TSX Venture Exchange (the “TSXV”) has accepted the Company’s listing application, and the Company’s common shares were listed and halted on the TSXV at the opening of today’s market to facilitate closing of the IPO. The Company expects that the halt will be lifted at the opening of the market on December 13, 2012, and the Company’s shares will then resume trading under the symbol “ROB”.
Jordan Capital Markets Inc. (the “Agent”) acted as the Company’s agent. As consideration, the Agent received: (i) a cash commission of $24,000 being 8% of the gross proceeds of the IPO; (ii) a corporate finance fee of $39,200 (including HST); and (iii) reimbursement for its expenses incurred.
The Company presently has 12,250,001 common shares issued and outstanding of which 2,000,001 common shares are subject to escrow restrictions as set out in an Escrow Agreement dated January 25, 2012, among the Company, Computershare Investor Services Inc. and certain principals of the Company, to be released as to 10% on December 13, 2012 and 15% every six months thereafter.
Complete details of the IPO and the Company’s business are as set out in the Company’s IPO Prospectus dated November 5, 2012 which is available on SEDAR (http://www.sedar.com).
The Company is in the business of mineral exploration and development and has a 100% legal and beneficial interest in 11 mineral claims located within the Alberni Mining division in British Columbia, more commonly known as the Conuma Property. Situated on the central west coast of Vancouver Island, approximately 80 kilometres west of Campbell River and 44 kilometres northwest of Gold River, B.C., the property is subject to a 2.0% NSR in favour of the property vendor.
The Company’s board of directors consists of Robert Eadie (CEO, President), Gary Arca (CFO, Corporate Secretary), David Gunning and Corina O. Zatreanu Glenn.
Suite 750 – 580 Hornby Street, Box 113, Vancouver, British Columbia, Canada V6C 3B6 Telephone: (604) 602‐4935 Facsimile: (604) 602‐4936 email: [email protected] The Company announces that it has granted an aggregate of 1,225,000 incentive stock options to directors exercisable at $0.15 per share for a period of five years expiring December 13, 2017.
ON BEHALF OF THE BOARD
Signed “Robert Eadie”
Robert Eadie, Chief Executive Officer, President and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935 Facsimile: 1-604-602-4936 Website: www.redhutmetals.com
Neither the 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.
Certain statements in this press release may be considered forward-looking information, including those relating to the "expectations", "intentions" or "plans" of the Company. Such information involves known and unknown risks, uncertainties and other factors - including the approvals of regulators, availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, project cost overruns or unanticipated costs and expenses and other risks identified by the Company in its public securities filings-- that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, except to the extent required by law, whether as a result of new information, future events or otherwise.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. NONE OF THE COMPANY’S SECURITIES HAVE BEEN, OR WILL BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.