Rise Gold Increases Equity Financing to C$4.5 M and Negotiates US$1.0 M in Debt Financing
.
Rise Gold Increases Equity Financing to C$4.5 M and Negotiates US$1.0 M in
Debt Financing
August 20, 2019 – Vancouver, British Columbia – Rise Gold Corp. (CSE: RISE , OTC QB:
RYES) (the “ Company”) announces that it has increased the size of the non- brokered private
placement previously announced in its July 3, 2019 news release from C$1,750,000 to
C$4,500,000 through the issuance of up to 64,285,714 units (each a “Unit”) at a price of C$0.07
per Unit, with each Unit comprising one share of common stock (a “Share”) and one -half of one
share purchase warrant (the “Private Placement”). Each whole warrant (a “Warrant”) entitles the
holder to acquire one Share at an exercise price of C$0.10 for a period o f three years from the
date of issuance.
The Company previously announced the first closing of the Private Placement on July 11th for a
total of C$725,769 through the sale of 10,368,131 Units.
The Company has closed a second tranche of the Private Placement for a total of C$ 3,207,850
through the sale of 45,826,435 Units. Warrants issued in the second tranc he may be exercised
until August 19, 2022. The Company has paid finders fees in accordance with CSE policie s of
C$7,837 and issued a total of 111,960 finder ’s warrants, each finder ’s warrant entitling the
holder to acquire one Share at a price of C$0.10 until August 19, 2022.
All securities issued pursuant to the Private Placement are subject to statutory hold periods in
accordance with applicable United States and Canadian securities laws. Rise Gold will use the
proceeds from the Private Placement for the advancement of its Idaho -Maryland Gold Project
and for general working capital.
The Company announces that it has entered into a non- binding letter of i ntent with Eridanus
Capital LLC (the “ Lender”) for a US$1,000,000 loan (the “Loan”). The Loan h as a term of 4
years and an annual interest rate of 10% for the first two years increasing to 20% in year 3 and to
25% in year 4. Interest will accrue and be paid along with the principal upon the maturity date.
The Lender will be issued 11,500,000 bonus share purchase warrants as additional consideration
for advancing the Loan. Each warrant entitles the holder to acquire one Share of the Company at
an exercise price of C$0.10 for a period of three years from the date of issuance . The Loan may
be repaid prior to the maturity date, in whole or in part, provided that all accrued interest is paid.
In addition, if total interest payments are less than $200,000 (two years’ interest), the difference
will be paid to the Lender as prepayment compensation. The Loan will be secured against the
assets of the Company and its subsidiary and will be used for permitting, engineering and
working capital at the Company’s Idaho Maryland Gold Project.
- 2 -
The securities offered have not been registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold
absent registration or compliance with an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state securities laws.
About Rise Gold Corp.
Rise Gold is an exploration-stage mining company. The Company’s principal asset is the historic
past-producing Idaho -Maryland Gold Mine located in Nevada County, California, USA. The
Idaho-Maryland Gold Mine is a past producing gold mine with total past production of 2,414,000
oz of gold at an average mill head grade of 17 gpt gold from 1866- 1955. Historic production at
the Idaho-Maryland Mine is disclosed in the Technical Report on the Idaho -Maryland Project
dated June 1st, 2017 and available on www.sedar.com. Rise Gold is incorporated in Nevada,
USA and maintains its head office in Vancouver, British Columbia, Canada.
On behalf of the Board of Directors:
Benjamin Mossman
President, CEO and Director
Rise Gold Corp.
For further information, please contact:
RISE GOLD CORP.
Suite 650, 669 Howe Street
Vancouver, BC V6C 0B4
T: 604.260.4577
www.risegoldcorp.com
The CSE has not reviewed, approved or disapproved the contents of this news release.
Forward-Looking Statements
This press release contains certain forward -looking statements within the meaning of applicable
securities laws. Forward -looking statements are frequently characterized by words such as
“plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estim ate” and other similar words
or statements that certain events or conditions “may” or “will” occur.
- 3 -
Although the Company believes that the expectations reflected in the forward-looking statements
are reasonable, there can be no assurance that such expectations will prove to be correct. Such
forward-looking statements are subject to risks, uncertainties and assumptions related to certain
factors including, without limitation, obtaining all necessary approvals, meeting expenditure and
financing requirement s, compliance with environmental regulations, title matters, operating
hazards, metal prices, political and economic factors, competitive factors, general economic
conditions, relationships with vendors and strategic partners, governmental regulation and
supervision, seasonality, technological change, industry practices, and one -time events that may
cause actual results, performance or developments to differ materially from those contained in
the forward -looking statements. Accordingly, readers should not place undue reliance on
forward-looking statements and information contained in this release. Rise undertakes no
obligation to update forward-looking statements or information except as required by law.