Redzone Resources Ltd. Announces Private Placement Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Redzone Resources Ltd. ("Redzone" or the "Company") (TSX:REZ) is pleased to announce that it is completing a non-brokered private placement (the "Offering") pursuant to which it will issue up to 6,666,666 common shares ("Shares") at a price of $0.15 per Share to raise aggregate gross proceeds of up to $1,000,000. In connection with the Offering, Redzone has agreed to issue broker warrants to certain qualified registrants assisting in the Offering entitling the holders to acquire such number of Shares as is equal to 5% of the aggregate number of Shares sold by such finders in the Offering, exercisable at a price of $0.17 per Share for a period of one year following the closing of the Offering. The Offering remains subject to the receipt of all applicable regulatory approvals.
The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
Forward Looking Statements - Certain information set forth in this news release may contain forward- looking statements that involve substantial known and unknown risks and uncertainties. These forward- looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Redzone, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory approvals, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Redzone Resources Ltd.
President and Chief Executive Officer