Rio Silver Announces Close of Oversubscribed Private Placement
Rio Silver Announces Close of
Oversubscribed Private Placement
VANCOUVER
,
Nov. 7, 2019
/CNW/ -
Rio Silver Inc
. ("Rio Silver" or the "Company") (TSX.V: RYO) is
pleased to announce that it has closed the first tranche of its previously announced non-brokered
private placement (the "Financing") for gross proceeds of
$576,000
.
Upon the completion of the Financing, the Company issued 11,520,000 units (the "Units") at a price
of
$0.05
per Unit. Each Unit consists of one common share of the Company and one common share
purchase warrant. Each warrant is exercisable into one additional common share of the Company at
a price of
$0.07
per share until
May 7, 2021
, unless the closing price of the common shares of the
Company is
$0.15
or higher for fifteen (15) consecutive trading days any time after the date that is
four months and a day after issue, in which case the Warrants will expire thirty (30) calendar days
after notice to Warrantholders announcing an earlier expiry date (the "Accelerated Expiry").
The Company paid finders' fees of
$4,000
in cash and issued 80,000 finder warrants, with each
such finder warrant entitling the holder thereof to acquire one common share of the Company at a
price of
$0.07
per share until
May 7, 2021
, subject to the Accelerated Expiry.
The Financing consisted of participation by pro-group member
Shaun Chin
of PI Financial, for
500,000 Units, as well as three insiders:
Christopher Verrico
, CEO and a director of the Company,
purchased 1,500,000 Units,
Rick Mazur
purchased 900,000 Units and
Steve Brunelle
purchased
880,000 Units.
Proceeds from the Financing will be used to advance the Company's Niñobamba silver and gold
project in
Peru
by re-gaining social license within the local district, for working capital, and to explore
potential precious metal projects in
Peru
that offer near term revenue potential and other working
capital purposes.
The securities issued under the Financing will be subject to a statutory hold until
March 7, 2020
.
The Company further announces that, pursuant to the Financing, as outlined above,
Rick Mazur
, a
director of the Company, has acquired ownership, control and direction over 900,000 common
shares of the Company, representing 1.66% of the issued and outstanding common shares of the
Company and an additional 900,000 share purchase warrants. Assuming exercise of these share
purchase warrants, he would have acquired ownership, control and direction over 1,800,000
common shares, representing 3.26% of the issued and outstanding common shares under the
Financing.
Following the acquisition, Mr. Mazur has ownership, control and direction over 6,022,623 common
shares, representing 11.08% of the issued and outstanding common shares of the Company, and
900,000 share purchase warrants. Assuming exercise of all of the share purchase warrants held by
Mr. Mazur, he would have ownership, control and direction over 6,922,623 common shares,
representing 12.52% of the issued and outstanding common shares.
Mr. Mazur has advised the Company that he has acquired the securities for investment purposes,
and may in the future acquire or dispose of shares as circumstances or market conditions warrants.
In the future, Mr. Mazur may acquire additional securities of the Company or dispose of such
securities through the market or otherwise subject to a number of factors, including general market
and economic conditions, other investment and business opportunities available and other
circumstances.
This news release is being issued in accordance with National Instrument 62-103 – The Early
Warning System and Related Take-Over Bid and Insider Reporting Issues (the "Instrument") in
connection with the filing of early warning report to be filed in connection therewith. The early
warning report respecting the transaction will be filed as required by the Instrument on the System
for Electronic Document Analysis and Review ("SEDAR") under the Company's profile at
www.sedar.com
or may be obtained by contacting
Chris Verrico
at (604-762-4448).
The Company also announces that it has accepted the resignation of director and past CEO, Mr.
Jeffrey J. Reeder P.Geo
. from the Board of Directors. Mr. Reeder will be continuing as a non-
executive consultant, to aid the Company with the pursuit of opportunities that are uniquely attractive
due to
Peru's
mineral deposit rich endowment and advanced mining-friendly culture. The Company
thanks Mr. Reeder for his 5 years of service as a board member and looks forward to continuing a
prosperous relationship.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
This news release includes forward-looking statements that are subject to risks and uncertainties.
All statements within, other than statements of historical fact, are to be considered forward looking.
Although the Company believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not a guarantee of future performance
and actual results or developments may differ materially from those in forward-looking statements.
Factors that could cause actual results to differ materially from those in forward-looking statements
include market prices, exploitation and exploration successes, continued availability of capital and
financing, and general economic, market or business conditions. There can be no assurances that
such statements will prove accurate and, therefore, readers are advised to rely on their own
evaluation of such uncertainties. We do not assume any obligation to update any forward-looking
statements except as required by applicable laws.
SOURCE
Rio Silver
View original content:
http://www.newswire.ca/en/releases/archive/November2019/07/c9822.html
%SEDAR: 00015088E
For further information:
Christopher Verrico, President, CEO, Tel: (604) 762-4448, Email:
[email protected], Website: www.riosilverinc.com
CO: Rio Silver
CNW 21:48e 07-NOV-19