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8/11/17

Red Eagle (R.to) closes its placement

This morning Red Eagle (R.to) closed its rights offering placement for gross proceeds of a sneeze under CAD$30m. When the details of the situation and the deal were announced, your humble scribe ballparked that they'd need to raise at least CAD$20m in order to meet the obligations required for their re-tooling and re-opening of the San Ramon mine. That would have been bare minimum, but a more comfortable number would have been CAD$23m. Therefore the CAD$30m gross is a good result and R.to has no excuses on any failure to deliver on its new plan. So yeah, the company is still in a mess but it's in less of a mess than it was a few weeks ago and, as this price chart indicates, its recent trading action reflects that.



R.to has its cash. It now has the real work to do.