Revolution Increases Private Placement to $4,500,000 and Closes Financing
October 19th, 2011, Vancouver, BC, Canada, Revolution Resources Corp. TSX:RV ("Revolution" or the "Company") is pleased to announce it has increased and closed the non-brokered private placement announced October 3rd, 2011. The Company increased the financing from $4 million to $4.5 million, and issued 9 million units at a price of $0.50.
Kinross Gold Corporation has subscribed for 6 million units of the offering for proceeds of $3 million, which represents approximately 9% of the Company's issued and outstanding shares on an undiluted basis.
Each unit is comprised of one common share and one-half of one common share purchase warrant of the Company, each whole warrant being exercisable for one additional common share of the Company for a period of four years at an exercise price of $0.75 per share. The warrants will be subject to acceleration on written notice from the Company in the event the closing price of the common shares of the Company on the Toronto Stock Exchange is greater than $1.00 for 30 consecutive trading days. Kinross Gold Corporation will retain a right in future financings of the Company to maintain its then percentage interest in common shares of the Company, for a period of five years.
The Company paid finder's fees of $60,000 in cash and 120,000 finder's warrants in connection with the financing. Each finder's warrant is exercisable for one common share of the Company for a period of one year at an exercise price of $0.60 per share, subject to the same acceleration provisions described above.
Revolution intends to use the proceeds from the private placement to continue advancing the Champions Hills projects in North Carolina, and to begin exploration at the newly-optioned Mexican portfolio of properties.
Revolution Resources Corp. is a TSX-listed gold exploration company (TSX: RV) based in Vancouver, BC, Canada. Well-funded and with no long-term debt, the Company's current exploration activities are focused on two flagship projects located in the Champion Hills district of North Carolina and the newly-optioned property portfolio of Lake Shore Gold in Mexico, previously owned by West Timmins Mining.
The Company has made multiple discoveries in the Champion Hills District in the Carolina Slate Belt of North Carolina, where drilling has encountered: 104.0 m of 1.27 g/t Au, including 40.0m of 2.33 g/t, 54.0m of 1.56 g/t Au, including 28.0m of 3.01 g/t Au, and 22.53m of 6.10 g/t Au and 258.65 g/t Ag (see Revolution news release dated June 22, 2011). The Slate Belt hosts most of the area's past producing gold mines, most notably the Ridgeway Mine, and the Haile Mine currently awaiting permits to commence production.
Revolution's newly-optioned Mexican property portfolio of Lake Shore Gold contains land totalling over 400,000 hectares. The properties cover two distinct districts situated in regions which host current- and past-producing mines. Companies currently operating in the regions include: Goldcorp: Penasquito and Camino Rojo and New Gold: Cerro San Pedro.
ON BEHALF OF THE BOARD
of Revolution Resources Corp
President, CEO and Director
For more information please contact:
Manager, Investor Relations
President, CEO and Director
Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to proposed exploration, development and production activities and their timing, potential mineralization and the anticipated acquisition of property interests. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, receipt of regulatory approvals, completion of anticipated transactions, the timing and success of future exploration, development and production activities, exploration and development risks, expenditure and financing requirements, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices and one-time events. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.