Rio Silver Secures Conditional Approval for Private Placement
Rio Silver Secures Conditional Approval for Private Placement
Rio Silver Inc. has exciting news for its investors and stakeholders following the recent conditional approval from the TSX Venture Exchange. The company is moving forward with a significant upsized non-brokered private placement aimed at raising $2.2 million. This initiative is anticipated to be a crucial step in advancing the company’s exploration and development objectives.
Details of the Private Placement
The approved offering consists of 22 million units priced at 10 cents each, targeting total gross proceeds of $2.2 million. Each unit is comprised of a common share and a non-transferable warrant, with the warrants exercisable into common shares at a price of 15 cents each for a period of three years. An attractive feature of this plan is that if the company’s shares achieve a closing price of 25 cents or higher for 15 consecutive trading days, it may expedite the expiry date of the warrants with a notification through a news release.
Finder's Fees and Commissions
As part of the private placement, Rio Silver acknowledges that it will also be paying a finder's fee amounting to $74,520. Additionally, 745,200 non-transferable warrants, known as “broker's warrants,” will be issued to facilitate the capital raising. Each of these broker warrants will have similar terms, allowing their holders to acquire common shares at the same 15 cents price point.
Utilization of Proceeds
The proceeds generated from this placement will serve multiple purposes, including funding exploration and exploitation projects in Peru, maintaining general working capital, and addressing existing debts. This strategic financial move underscores Rio Silver’s commitment to enhancing its operational capabilities and expanding its resource base.
Upcoming Projects and Developments
In conjunction with this private placement, Rio Silver is also preparing to finalize the acquisition of the Maria Norte Au-Ag-Pb-Zn project. This venture reflects the company’s focus on securing valuable asset classes and promoting an aggressive growth strategy, which can catalyze increased cash flow and sustainable development.
About Rio Silver Inc.
Rio Silver Inc. is focused on responsible resource development, particularly in the precious metals sector. The company is dedicated to acquiring projects that promise near-term cash flow, ensuring a balance between shareholder interests and operational progress. Its strategic positioning in Peru is advantageous, as the country is noted for its favorable mining policies and active development in resource investment.
Company Contacts and Additional Information
For inquiries or further information, stakeholders can reach out directly to Chris Verrico, the President and CEO of Rio Silver Inc. at 604-762-4448 or via email. The official website, which provides a comprehensive overview of Rio Silver’s operations and aspirations, can be accessed for more insights.
Frequently Asked Questions
What is the purpose of the $2.2 million private placement?
The funds raised from the private placement intend to support exploration projects, maintain working capital, and settle existing debts.
Who is the CEO of Rio Silver?
Chris Verrico serves as the President and Chief Executive Officer of Rio Silver Inc.
What is the significance of the warrants in this placement?
The warrants allow investors to purchase additional shares at a set price, potentially benefiting from future increases in share value.
When will the proceeds from the private placement be utilized?
Funds will be utilized immediately for ongoing exploration, exploitation projects, and other financial responsibilities.
What project is Rio Silver looking to acquire?
Rio Silver is awaiting approval for the acquisition of the Maria Norte Au-Ag-Pb-Zn project, which is expected to bolster its asset portfolio significantly.
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