Red Canyon Closes Over-Subscribed Financing Backed By Strategic Lead Order
Summary
Red Canyon is pleased to welcome Teck as a new strategic investor.Existing major shareholder Crescat Capital LLC also participated in the financing, maintaining its proportionate equity ownership in the Company.Each Charity FT Share will qualify as a flow-through share within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the Tax Act).The proceeds from the Charity FT Offering will be used to incur eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures as both terms are defined in the Tax Act related to the Companys Kendal project and other projects in British Columbia, on or before December 31, 2026, and the Company will renounce all the Qualifying Expenditures in favour of the subscribers of the Charity FT Shares effective December 31, 2025 (the Qualifying Expenditures). All securities issued are restricted from trading until January 19, 2026.In connection with Tecks participation in the Charity FT Offering, the Company has entered into an Investor Rights Agreement with Teck under which, subject to certain conditions, Teck shall be granted the right to participate in future share issuances to maintain its proportionate equity ownership in the Company.Red Canyon Resources Ltd. (CSE: REDC | OTCQB: REDRF) is a geoscience-driven, discovery-focused mineral exploration company exploring North Americas top copper jurisdictions. Further information about NewQuest can be found on the company website at www.nqcapitalgroup.com1 Red Canyon has two projects subject to option earn in agreements under which the Company may acquire 100% interest of the projects.For more information, please visit the Companys website at www.redcanyonresources.com.On Behalf of the Board of DirectorsFor further information, please contact:The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this press release.Forward-Looking Statements:This news release includes certain forward-looking statements and forward-looking information (collectively, forward-looking statements) within the meaning of applicable Canadian securities legislation. Important risk factors that could cause actual results to differ materially from the Companys plans or expectations include failure to obtain CSE acceptance of the Charity FT Offering, inability to use the proceeds from the Charity FT Offering as expected, and risks associated with mineral exploration, including the risk that actual results and timing of exploration and development will be different from those expected by management. The forward-looking statements in this news release were developed based on the assumptions and expectations of management, including that CSE acceptance for the Charity FT Offering will be obtained, the Company will be able to use the proceeds from the Charity FT Offering as anticipated, as well as the other assumptions disclosed in this news release and that the risks described above will not materialize.