The company had announced plans last month to acquire Citabar's 36.69% interest for total consideration of $12.6 million, which included a set-off of about $1.1 million owed by Citabar.

Yesterday, Red Pine said its best-efforts placement had raised just over $20 million and it had elected to pay the entire $11.3 million consideration in cash and not issue any shares to Citabar.

It said Alamos Gold had exercised its right to maintain its 19.9% stake on a partially-diluted basis.

Former Detour Gold president and CEO Paul Martin was appointed Red Pine's director and non-executive chairman in February.

"We believe that the addition of Mr Martin further validates the strong potential of the Wawa gold project to become the next great Ontarian gold asset," Red Pine CEO Quentin Yarie said at the time.

Wawa's Minto Mine South and Surluga deposits have a combined 230,000 ounces of indicated gold and 471,000oz inferred, grading an average 5.47g/t and 5.39g/t respectively, according to a 2019 resource update which Red Pine had said "scratched the surface". 

The property held eight historical gold mines which had produced 120,000oz at an average headgrade above 9g/t, according to a presentation last month.

Red Pine believes Wawa has multimillion-ounce potential.

Red Pine's offering was priced at 40c per subscription receipt and 45c-55.6c per flow-through subscription receipt.

Proceeds from the flow-through subscription receipts would be used for exploration expenses.

The company was also planning a 10-for-1 share consolidation in conjunction with the transaction.

Its shares (TSXV: RPX) shot to a one-year high of 95c last month on news of its plans to take 100% ownership.

They closed down 6.6% yesterday to 71c, capitalising it at $34 million (US$27 million).