VANCOUVER, BC / January 7, 2021 / Ridgestone Mining Inc. (TSX.V: RMI) (OTCQB: RIGMF) (FRA:4U5) ("Ridgestone") announces that, further to its news release of December 17, 2020, it has increased the previously announced private placement from $1,900,000 to $2,320,000 and will issue up to an additional 6,000,000 units (each, a "Unit") at a price of $0.07 per Unit for additional gross proceeds of $420,000 (the "Private Placement").
Each Unit will consist of one common share and one half of one transferrable common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.10 per share for a period of one year from the date of issuance.
The Warrants will contain an acceleration provision which will provide that, should the Company’s common shares trade at or above $0.15 for a period of ten or more consecutive trading days (the “Acceleration Condition”), the expiry date of the Warrants will be accelerated to 30 days from the date that the Company provides notice (whether by written notice to the holder or the issuance of a press release) that the Acceleration Condition has been satisfied.
In connection with the Private Placement, the Company may issue certain eligible finders (each a “Finder”) warrants (each a “Finder’s Warrant”) equal to up to 6% of the number of Units placed by the Finder and pay such Finder a fee equal to 6% of the gross proceeds raised by the Finder. Each Finder’s Warrant will have the same terms as the Warrants.
The proceeds from the Private Placement will be used to partially fund the Company’s obligations under the Option Agreement and for working capital. The securities to be issued under the Private Placement will be subject to a four-month hold period in accordance with applicable securities laws and, if required, the policies of the of the TSX Venture Exchange.
Completion of the Private Placement is subject to final approval of the TSX Venture Exchange.
About Ridgestone Mining Inc.
Ridgestone is a Canadian mineral exploration company focused on its wholly-owned, high-grade Rebeico gold-copper project located in Sonora, Mexico.
For further information, please contact:
Rad Rajaram – Manager Corporate Relations and Business Development
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, timing of such programs, or exploration results. 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.