09:37 AM EST, 12/31/2019 (MT Newswires) -- Red Pine Exploration (RPX.V) on Tuesday said it closed a brokered C$3.78 million private placement of flow-through and common share units that included an investment in the company by Alamos Gold (AGI.TO), which took a 19.9% stake in the company.

Red Pine said it sold 25.89 million flow-through share units, priced at C$0.035 and made up of a tax-advantaged share and one half of a two-year warrant to buy a second share for C$0.05.

It also sold 82.1 million common share units, also priced at C$0.035, and made up of a share and a full warrant to buy a share at C$0.05 for two years.

Alamos acquired 53 million units in the offer, giving it an 11.1% stake undiluted and 20% on a partially diluted basis. It also received rights to appoint one board director and two members of a newly formed exploration committee it will share with Red Pine.

"The addition of Alamos as a strategic investor is a major step in validating the Wawa Gold Project as a top tier exploration property, and further positions Red Pine to deliver shareholder value through aggressive exploration," chief executive Quentin Yarie said in a release.

Red Pine shares last traded Monday, closing at C$0.035 on the TSX Venture Exchange.

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