SOURCE: c
Mar 29, 2011 15:26 ET
Ring of Fire Resources Inc. Increases Size of Private Placement Offering
TORONTO--(Marketwire - March 29, 2011) - Ring of Fire Resources Inc. (the "Company") (TSX-V : ROF ) (FRANKFURT : RG5 ) (PINKSHEETS : HWKPF ) announces that it has increased the size of the private placement of common share units ("Units") previously announced in its press release of March 25, 2011. The Company previously announced that it would conduct a private placement of up to 11,764,706 Units priced at $0.085 per unit to raise gross proceeds of up to $1,000,000. The Company has determined to increase the size of the private placement such that up to 17,647,059 Units would be sold at $0.085 per Unit to raise gross proceeds of up to $1,500,000. Each Unit consists of one common share of the Company (a "Common Share") and one purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share for a period of 2 years at an exercise price of $0.15 per share for the first 12 months from the date of issue, and at an exercise price of $0.20 per share for the next 12 months thereafter.
All securities issued in connection with this financing will be subject to a four-month hold period from the closing date. The private placement is subject to approval by the TSX Venture Exchange, as well as other applicable regulatory approval.
Under the terms of the compensation arrangement with IBK Capital Corp., the Company will pay a 9% cash commission on the amount raised, plus a number of broker's warrants equal to 10% of the gross proceeds raised divided by the price per Unit of $0.085. Each broker warrant will entitle the holder to acquire one Unit at a price of $0.085 per Unit for a period of 3 years from the date of issue.
The proceeds from the private placement will be used by the Company for exploration work on its properties in Northern Ontario and for general corporate purposes.
About Ring of Fire Resources Inc.:
Ring of Fire Resources Inc. is a Canadian based junior exploration company with a portfolio of diversified exploration projects at various stages of exploration and drilling for Nickel/Copper/Chromium/PGM in the 'Ring of Fire' McFauld's Lake Area of Northern Ontario, Gold in Northern Ontario, and Uranium in Northern Saskatchewan and Quebec
More detailed information is available on the website at http://www.ringoffireresources.com/
All securities issued in connection with this financing will be subject to a four-month hold period from the closing date. The private placement is subject to approval by the TSX Venture Exchange, as well as other applicable regulatory approval.
Under the terms of the compensation arrangement with IBK Capital Corp., the Company will pay a 9% cash commission on the amount raised, plus a number of broker's warrants equal to 10% of the gross proceeds raised divided by the price per Unit of $0.085. Each broker warrant will entitle the holder to acquire one Unit at a price of $0.085 per Unit for a period of 3 years from the date of issue.
The proceeds from the private placement will be used by the Company for exploration work on its properties in Northern Ontario and for general corporate purposes.
About Ring of Fire Resources Inc.:
Ring of Fire Resources Inc. is a Canadian based junior exploration company with a portfolio of diversified exploration projects at various stages of exploration and drilling for Nickel/Copper/Chromium/PGM in the 'Ring of Fire' McFauld's Lake Area of Northern Ontario, Gold in Northern Ontario, and Uranium in Northern Saskatchewan and Quebec
More detailed information is available on the website at http://www.ringoffireresources.com/
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