VANCOUVER, April 3, 2012 /CNW/ - Revolution Resources Corp. (TSX: RV) ("Revolution" or the "Company") is pleased to announce that it has closed its previously announced bought deal public offering, including the full exercise of the over-allotment option granted to the underwriters. The Company issued 16,962,500 units at a price of $0.34 per unit for gross proceeds of $5,767,250 (the "Offering"). Each unit was comprised of one common share and one-half of one transferable share purchase warrant. Each whole share purchase warrant will entitle the holder to acquire one common share of the Company at a price $0.60 for a period of 18 months following the closing of the Offering.
The Offering was completed by a syndicate of underwriters co-led by Haywood Securities Inc. and Paradigm Capital Inc., and including Canaccord Genuity Corp. The underwriters received a cash fee on the sale of the units equal to 7% of the gross proceeds raised, and non-transferable broker warrants ("Broker Warrants") equal in number to 7% of the units sold in the Offering. Each Broker Warrant will entitle the holder to acquire one common share of the Company at a price of $0.60 for a period of 18 months following the closing of the Offering.
The Company expects to use the net proceeds from the Offering to advance the Universo property in Mexico and the Champion Hills project in North Carolina, and for general working capital purposes.
The units and the common shares issuable on exercise of the underlying share purchase warrants have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state of the United States and may not be offered or sold within the United States or for the account or the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Revolution Resources Corp. is a TSX-listed 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. Learn more at www.revolutionresourcescorp.com.
ON BEHALF OF THE BOARD
of Revolution Resources Corp.
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 use of proceeds of the Offering and proposed exploration activities. 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, inability to obtain regulatory approvals, 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.
Manager, Investor Relations
President, CEO and Director