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Red Moon Closes $3.5 Million Financing

Red Moon Closes $3.5 Million Financing

News Release

March 25, 2021

Red Moon Closes $3.5 Million Financing

St. John’s, Newfoundland and Labrador, March 25, 2021 – Red Moon Resources Inc. (the “Company” or “Red Moon” – TSXV: RMK) is pleased to announce that with the closing of the second tranche of its non-brokered private placement, the Company has raised total gross proceeds of $3.5 million in an offering that has received TSX Venture Exchange (“TSXV”) final approval.

The second tranche comprised 6,475,941 units (“Units”) at a price of $0.35 for gross proceeds of $2,266,579, adding to the first tranche closing of 3,524,003 units at $0.35 for gross proceeds of $1,233,401 (refer to March 11, 2021, news release). In total, the Company placed 9,999,944 units at $0.35 for gross proceeds of $3,499,980.

Each unit consisted of one common share and one-half of a common share purchase warrant exercisable at a price of $0.55 per common share for a period of two years following closing.

Insiders purchased an aggregate of 577,143 units. The insider participation is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1) (a) in that the fair market value of the consideration for the securities of the Company issued to the insiders does not exceed 25% of the Company’s market capitalization.

The private placement is subject to an acceleration clause whereby in the event that the closing price of the Company’s shares on the TSXV 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.

The proceeds of the offering will be used to complete a Feasibility Study for Red Moon’s Great Atlantic Salt Project, for mineral exploration and development activities in Newfoundland and Labrador, and for general working capital purposes. The securities issued have a four-month hold period as per applicable securities regulations and the policies of the TSXV.

Finders’ fees in the aggregate amount of $181,376.93 cash and 518,220 finders’ warrants are payable in connection with the private placement. The finders’ warrants have the same terms as the unit warrants.

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
(709) 754-3186
laracy@redmoonresources.com
RedMoonResources.com

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.

TSXV: SALT