CB Gold Stake Increased
May 11, 2016 – Red Eagle Mining Corporation (TSX-V: RD, OTCQX: RDEMF, SSE-V: RDCL) is pleased to announce that it has acquired 16,933,333 units (“Unit”) of CB Gold Inc. (“CB Gold”) at a price of $0.075 per Unit for total subscription proceeds of $1,270,000 (US$ 1,000,000). Each Unit consists of one common share (“Share”) and one warrant (“Warrant”), with each Warrant exercisable into one Share at $0.10 per Share for a period of five years. CB Gold has the right to call the Warrants after one year from the date of issuance. The Shares and Warrants are subject to a four month hold period from the date of issuance.
Subsequent to the placement, Red Eagle Mining holds an aggregate of 248,033,377 Shares of CB Gold, representing 71% of the issued and outstanding CB Gold Shares. Prior to the placement Red Eagle Mining held 71% of the issued and outstanding common shares of CB Gold. Red Eagle Mining also acquired 16,933,333 Warrants. Assuming exercise of these Warrants, Red Eagle Mining would hold an aggregate of 264,966,710 CB Gold Shares representing 72% of the then issued and outstanding CB Gold Shares. Red Eagle Mining acquired the Shares for investment purposes only and may acquire additional securities of CB Gold in the future.
For further information on Red Eagle Mining Corporation please contact:
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 920 – 1030 West Georgia Street
Vancouver, BC, V6E 2Y3
+1 778 372 2558
+1 604 360 5722 mobile
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although Red Eagle Mining believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.