Radisson raising $6 million from upsized financing

Radisson Mining Resources Inc. [RDS-TSXV, RMRDF-OTCQB] said it has upsized a previously announced private placement financing which is now expected to raise $6 million, up from the original $3 million target. Proceeds are earmarked for exploration and development of the company’s flagship O’Brien gold project, which is located along the Larder-Lake-Cadillac Break, halfway between Rouyn-Noranda and Val-d’Or, Quebec.

The offering will include the sale of the units consisting of one Class A common share and one half of one common share purchase warrant priced at 27 cents per unit. Each warrant will be exercisable for 24 months after closing at a price of 37 cents per underlying common share.

The offering also consists of Class A common shares, each of which will qualify as a flow-through share as defined under the Income Tax Act (Canada) at a price of 36 cents per flow-through share.

Also included in the offering are units consisting of one flow-through share and one half of one warrant to be sold on a charitable flow-through basis for 47 cents per charity flow-through unit. Each warrant will be exercisable or 24 months following the closing date at 37 cents per underlying Class A common share. Subject to all necessary regulatory approvals, closing is expected to occur by October 17, 2024.

Radisson shares were unchanged at 29 cents and trade in a 52-week range of 33 cents and 15 cents.

O’Brien is Radisson’s flagship project. It hosts the former O’Brien Mine, which is considered to have been the Abitibi Greenstone Belt’s highest-grade producers during its productive years from 1926 to 1957. During those years, it produced 1.19 million tonnes at 15.25 g/t gold or 587,121 ounces of gold.

Radisson recently said it has entered into a memorandum of understanding with Iamgold Corp [IMG-TSX, IAG-NYSE]. to assess the design criteria for processing mined material from the O’Brien project at the nearby Doyon gold mill, part of Iamgold’s Doyon Westwood mine complex. The Doyon mill is located 21 kilometres west of O’Brien within Quebec’s Abitibi region and directly accessible along Trans-Canada Hwy 117.

If off-site processing at Doyon is deemed viable by both parties, Radison said it intends to complete a preliminary economic assessment (PEA) for O’Brien, which will further consider mine design, mining methodology, mining rate and gold production profile, facilities, requirements, development and overall project economic.

“Hub-and-spoke mining and milling arrangements have long been a feature of gold mining in the Abitibi,’’ said Radisson President and CEO Matt Manson. He said the MOU marked the first step in assessing the viability of such an arrangement for O’Brien Gold. “The MOU with Iamgold will facilitate the technical work required to assess the compatibility of O’Brien’s gold ore with the Doyon mill,’’ Manson said.