March 5, 2021
St. John’s, Newfoundland and Labrador, March 5, 2021 – Red Moon Resources Inc. (“the Company” – “Red Moon” – TSXV: RMK) is pleased to provide the following corporate update as the Company accelerates its Great Atlantic Salt Project, the Ace open-pit gypsum mine and the Black Bay high-purity nepheline discovery targeting the glass market.
The Company’s previously announced private placement of $3,500,000, all in hard dollar units priced at $0.35 per unit (refer to Feb. 17, 2021 news release), is fully committed and will close shortly. Each unit consists of one common share and one half of a common share warrant, with each whole warrant exercisable at a price of $0.55 per common share for a period of two years following closing.
This private placement is subject to an acceleration clause whereby in the event that the closing price of the Company’s shares on the TSX Venture Exchange is $0.85 or greater per share during any ten (10) consecutive day trading period at any time subsequent to four months and one day after the closing date, the warrants will expire at 4:00 pm (Newfoundland time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the holders of the warrants.
Proceeds of the financing will go mostly toward completing a Feasibility Study for the Great Atlantic Salt Project featuring a large and homogeneous high-grade resource strategically located within five kilometers of a deep-sea port in western Newfoundland. Financing proceeds will also go toward further exploration and development of the Company’s nepheline discovery in southern Labrador, in addition to general corporate purposes.
The securities issued will have a four-month hold period as per applicable regulations. The financing is subject to TSX Venture Exchange approval.
New Website, Corporate Presentation
The Company is pleased to announce the launch of its new website at RedMoonResources.com. The new website offers a clean, modern design and fresh branding around the Great Atlantic Salt Project with its multiple logistical, technical and environmental advantages. Mr. Rowland Howe, former manager of the world’s largest underground salt mine in Goderich, Ontario, owned by NYSE-listed Compass Minerals, and current President of the Goderich Port Management Corporation, is a Red Moon director and will play a very active role in immediately advancing this project in a favored industrial area in one of the world’s most mining friendly jurisdictions.
The Company’s new Corporate Presentation is available on the home page of the website and can also be viewed by visiting the following URL:
Mr. Patrick Laracy, Red Moon President and CEO, commented: “This is the most exciting time in the company’s history as we take major steps in turning our flagship Great Atlantic Salt Project into a planned highly efficient state-of-the-art salt ‘factory’ that serves the large road de-icing markets in Eastern Canada and the Northeastern United States, areas that rely significantly on overseas imports. Great Atlantic is an environmentally friendly project situated in one of the world’s top ten mining jurisdictions according to the latest Fraser Institute survey. We expect strong news flow throughout 2021 with activity at all of our projects. Red Moon’s new website and corporate presentation represent the first rebranding steps of the Company as we ramp up our efforts to build shareholder value.”
Investor Awareness Program
Red Moon has retained OGIB Corporate Bulletin (“OGIB”) to provide investor communications services for a six-month term commencing March, 2021. The services will include an investor marketing and advertising campaign through an investor awareness program on OGIB’s two websites. For the services, OGIB will receive a cash fee of $150,000 from the Company.
About Red Moon Resources
Red Moon Resources Inc. is an emerging commodities leader in Atlantic Canada, focused on Newfoundland and Labrador, with 100% ownership of the Great Atlantic salt deposit in addition to a producing gypsum mine and an early-stage nepheline discovery.
For information, please contact:
Patrick J. Laracy, President and CEO
Not for release in the United States or to U.S. newswire services
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.