VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Redzone Resources Ltd. ("Redzone" or the "Company") (TSX:REZ) is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") pursuant to which it has issued an aggregate of 7,183,333 common shares ("Shares") at a price of $0.15 per Share to raise aggregate gross proceeds of approximately $1,077,500.
Michael Murphy, President and Chief Executive Officer of Redzone, stated, "This Offering provides Redzone with the flexibility to pursue our acquisition strategy as we continue to explore development options on our recently drilled Lara Property in Peru."
In connection with the Offering, Redzone issued an aggregate of 318,333 broker warrants to certain qualified registrants assisting in the Offering, each entitling the holder thereof to acquire one Share at a price of $0.17 per Share for a period of one year. All securities issued and issuable pursuant to the Offering are subject to a statutory hold period expiring March 15, 2013. The Offering remains subject to the receipt of the final approval of the Toronto Stock Exchange.
The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
Forward-Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Redzone, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory approvals, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
Redzone Resources Ltd.
President and Chief Executive Officer