Red Eagle Mining announced a $65 million construction financing with Orion Mine Finance. The financing includes a private placement of common shares and a secured $60 million credit facility.

Pursuant to the Private Placement, Red Eagle Mining will issue shares in an amount equal to the lesser of $4 million divided by the U.S. dollar equivalent of CAD $0.33 on the closing date and such number of shares as would result in Orion owning 19.9% of the issued and outstanding shares.

Substantially all of the proceeds will be used for development and construction of the San Ramon Gold Mine. The shares will be subject to a four month hold period from the date of issuance. The closing of the transactions are subject to the prior approval of the TSX Venture Exchange.

Orion Mine Finance Group is a mining-focused business with approximately $1.8 billion under management specializing in providing flexible capital investment solutions to junior mining companies in the base and precious metals sector.