Red Lake Gold Inc. (CSE: RGLD) announced plans to complete a non-brokered private placement of up to 5,000,000 common shares at $0.075 per share, for gross proceeds of up to $375,000.

The offering may be completed in one or more tranches. The company said it intends to use the net proceeds for general working capital, ongoing corporate obligations, and exploration work at its mineral properties.

Insiders may participate in up to 25% of the offering. The company said no new insider or control person is expected to be created as a result. Insider participation would constitute a related party transaction under Multilateral Instrument 61-101, though the company expects to rely on exemptions from formal valuation and minority shareholder approval requirements, as the fair market value of shares issued to insiders will not exceed 25% of the company's market capitalization.

All common shares issued under the offering will be subject to a statutory hold period of four months and one day from the applicable closing date. Completion of the offering remains subject to regulatory approvals, including acceptance by the Canadian Securities Exchange.

Red Lake Gold holds mineral exploration claims in various locations in Ontario, Canada. This article is based on a press release statement from the company.