ROUYN-NORANDA, QUÉBEC--(Marketwire - July 19, 2012) - Radisson Mining Resources Inc. (TSX VENTURE:RDS) is pleased to announce that it closed a private placement for $200,000 on July 18, 2012.
The placement totaling $200,000 is comprised of 3,333,334 units at a price of $0.06 each. Each unit consists of one common share and one warrant. Each warrant entitles the holder to acquire one common share of Radisson at a price of $0.10 during a period of 24 months following the date of issue, that is, until July 18, 2014. All securities issued in connection with this placement are subject to a hold period of four months.
The proceeds will be used for administrative expenses in addition to moving ahead with underground (via decline) exploration and bulk sampling of Zone 36.
Three directors of Radisson participated in the placement: Michel David (416,667 units), Donald Lacasse (50,000 units) and Luc Simoneau (50,000 units), representing 15% of the placement ($31,000). Following the placement, these directors will respectively hold 446,667, 356,569 and 214,528 of the 67,718,540 outstanding shares of Radisson. This participation constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101). The Board has however determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, since neither the fair market value of the transaction nor the consideration paid for the transaction will exceed 25% of the Company's market capitalization. The directors' participation was confirmed at the time of closing and was therefore not the subject of an earlier report.
In connection with the placement, the finder will receive cash compensation of 10% of the amount raised (excluding the amounts subscribed by insiders).
ABOUT RADISSON MINING RESOURCES:
Radisson is a Quebec-based exploration company with an interest in seven properties in Northwestern Quebec and a property in Northwestern Ontario. Radisson's main asset, the O'Brien/Kewagama project, (the project) is located along the Cadillac Break. The project hosts the O'Brien Mine, which is considered the highest grade gold producer of the Abitibi greenstone belt (production of 1,302,000 tons at 0.448 oz/t from 1932 to 1955).
Previous exploration by the Company on the project resulted in the discovery of an indicated resource of 218,540 ounces (based on an indicated resource of 270,000 tons at an uncut grade of 0.56 oz/ton and an inferred resource of 182,000 tons at an uncut grade of 0.37 ounces) as defined in the Scott Wilson RPA NI 43-101 report of May 2007.
These resources, all outlined above the 650-metre level, are located over 800 metres east of the old O'Brien mine workings, and represent a new discovery of high grade mineralization of the same type mined and produced at the O'Brien gold mine. These resources are contained within a gold zone referred to as Zone 36.
In 2011 and 2012, the Company carried out two successful diamond drilling programs, resulting in new discoveries in the largely unexplored eastern portion of the project (Kewagama) and further definition of the eastern extension of Zone 36 mineralisation.
In parallel, the Company is conducting an internal study and has begun planning an underground exploration and bulk sampling program on Zone 36.
Access will be via a 4.5 x 5 metre decline (15%) designed to reach the 350-, 500- and 750-foot levels. The planned length is currently in the order of 4600 m.
The underground access will be used to evaluate and bulk sample Zone 36, explore for (via underground drilling) and discover any new gold zones, and carry out necessary mining and metallurgical feasibility studies.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.