Radisson Announces Closing of New Alger Project Acquisition and Partnership with Renforth Resources Inc. - Seite 2

Mario Bouchard, Chief Executive Officer of Radisson Mining Resources Inc. commented “We are delighted to have closed this transaction and look forward to our partnership with Renforth. We believe the transaction significantly increases the attractiveness of the O’Brien project. Radisson’s claims now cover a very prospective land package including an approximate 6 km strike length along the prolific Cadillac Break, comprising almost 3km to the east and west of the old O’Brien Mine, which has historically been the highest-grade gold mine in Quebec.  We look forward to expanding our exploration program to include the newly acquired claims”

Transaction highlights:

• Radisson acquired a 100% interest in New Alger for the following consideration:
  • 12 million class A common shares of Radisson issued to Renforth at closing of the transaction;
  • $0.5 million in cash paid at closing of the transaction;
  • a $1.5 million cash contingent payment, payable on the earlier of the announcement of commercial production at New Alger, a sale of New Alger for more than C$40 million or a change of control of Radisson.
• Within the coming month, Renforth plans to complete the previously announced financing to raise approximately $3.24 million in cash proceeds, which will be backed by a strategic investment by Radisson into Renforth.
  • The financing is anticipated to be a charity flow-through financing, pursuant to which Renforth plans to issue 24 million flow-through shares at $0.135/share

Transaction funding:

Radisson anticipates that its strong cash position will be sufficient to both complete the transaction and to expand the ongoing drill program to include the newly acquired claims. As of July 31, 2020, the company estimates a total liquidity position of approximately $8.5 million including,

• a liquidity position of approximately $3.3 million, which includes proceeds from the recent sales of non-core securities and receivables
• anticipated liquidity of approximately $0.7 million from the exercise of in-the-money options and warrants by certain holders, including the Strategic Advisor, Chairman, CEO, President and Directors, who have indicated their intention to exercise such securities; and
• funds reserved for exploration and evaluation of approximately $4.5 million, which should facilitate an expansion in the ongoing 60,000 m drill program to over 75,000 m, permitting additional drilling in 2021

Mutual share lock-up agreements