Red Hut Metals Signs LOI for Rights to Gold-Bearing Claims in California Update

Red Hut Metals (TSXV:ROB) has announced it has signed a letter of intent where it will acquire by way of assignment all of the contractual interests held by the Assignors in California.
As quoted in the press release:

The Providence Group of Mines is located in the Summerville Mining District, Tuolumne County, California, upon the eastern belt of the “Mother Lode” District. A number of high grade, well known Motherlode gold mines of California are found within this belt.
The Company is pleased to announce that it has staked a further 9 claims contiguous to the existing Providence patented and located claims. The Company acquired the additional ground to protect the potential unexplored strike and down dip extensions of the known mineralization.
About the Property
The Property includes six parcels which have been fully patented and are owned in fee simple, and 22 staked mining claims on Bureau of Land Management and US Forest Service property (320 acres). The Property host several historic mines and a historic mill site.
This news release has been reviewed and approved by John Kowalchuk, P.Geo., who is acting as the Company’s Qualified Person for Providence Mines Project, in accordance with regulations under NI 43-101 standards. This is an arm’s length Transaction.
The Transaction will constitute a reviewable transaction under the policies of the TSX Venture Exchange (the “Exchange”) and as such, it will require approval of the Exchange. As no change of control will result, Red Hut will not be required to seek the approval of its shareholders.
Private Placement
In conjunction with the Transaction, Red Hut will undertake, subject to the acceptance of the Exchange, a private placement of at least $1,200,000 in gross proceeds (the “Financing”) through the issuance of at least 12 million units (the “Units”) at a price of $0.10 per Unit. Each Unit will be comprised of one common share and one-quarter of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one common share of Red Hut at a price of $0.25 per share for a period of one year. Red Hut expects to pay finders’ fees of not more than 7% (payable in Red Hut shares), and 7% finder’s warrants (with terms similar to the Warrants).

Click here to read the full press release.