Red Eagle Mining Corporation (TSX-V:RD) (OTCQX:RDEMF) has completed the previously announced bought deal offering and concurrent non-brokered private placement with Liberty Metals & Mining Holdings, LLC.
 

Pursuant to the Bought Deal Financing, 12,121,212 common shares of Red Eagle Mining were issued at a price of $0.33 per share for aggregate gross proceeds of approximately $4,000,000. In addition, LMM, a subsidiary of Liberty Mutual Insurance and Red Eagle Mining’s largest shareholder, has exercised their participation rights and has purchased 3,043,684 common shares at $0.33 per share by way of a concurrent non-brokered private placement in order to maintain LMM’s pro rata 19.9% interest in Red Eagle Mining. The shares issued to LMM in the Non-Brokered Financing are subject to a four month hold period from the date of issuance.
 

Aggregate gross proceeds from the Bought Deal Financing and the Non-Brokered Financing will total approximately $5,000,000. The net proceeds will be used for ongoing exploration, to complete permitting and a Definitive Feasibility Study for the San Ramon Gold Deposit within the 100% owned Santa Rosa Gold Project located in Antioquia, Colombia and for working capital purposes.
 

The Bought Deal Financing was underwritten by a syndicate of underwriters led by Haywood Securities Inc. and including National Bank Financial Inc. and PI Financial Corp.
 

About Red Eagle Mining
 

Red Eagle Mining is a gold exploration and development company with an experienced mine- development team. Management is focused on building shareholder value through discovering and developing gold projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining is developing the 320 km2 historic Santa Rosa Gold Project located in the Antioquia Batholith. Development will initially commence with the San Ramon Gold Deposit where a positive Preliminary Economic Assessment supports project advancement. Feasibility and permitting are currently underway.