Rhyolite Resources Ltd. Closes Private Placement

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Rhyolite Resources Ltd. ("Rhyolite" or the "Company") (TSX VENTURE:RYE)
announces the completion of a private placement of 4,000,000 units ("Unit") at a
price of $0.25 per Unit for gross proceeds of $1,000,000 (the "Private
Placement"). Each Unit consists of one common share and one share purchase
warrant of Rhyolite ("Warrant"). Each Warrant shall entitle the holder thereof
to acquire one additional common share of Rhyolite at an exercise price of $0.32
per share at any time on or before the date which is 12 months after the closing
date of the Private Placement expiring on March 10, 2011.


3,275,000 Units were issued on a brokered basis for gross proceeds of $818,750
("Brokered Private Placement"). Jones Gable & Company Limited (the "Agent")
acted as agent for the Brokered Private Placement. On closing, the Company paid
the Agent a commission equal to 7.5 per cent of the gross proceeds of the Units
sold in the Brokered Private Placement and issued 245,625 Agent's warrants. Each
Agent's warrant entitles the Agent to purchase one common share at a price of
$0.32 per common share for a period of 12 months from the closing expiring on
March 10 2011.


The remaining 725,000 Units were issued by the Company on a non-brokered basis
for gross proceeds of $181,250.


The Common Shares, Warrants and Agent's Warrants issued pursuant to the Private
Placement and securities underlying the Warrants and Agent's Warrants are
subject to a 4-month hold period expiring on July 11, 2010.


Ionic Securities Ltd. ("Ionic") of 1028, 550 Burrard Street, Vancouver, British
Columbia V6C 2B5 purchased 200,000 Units pursuant to the non-brokered portion of
the Private Placement and after giving effect to the purchase of Units, Ionic
currently owns, directly or indirectly, or exercises control or direction over
1,700,000 Common Shares representing approximately 18.48% of the issued and
outstanding Common Shares and Warrants to purchase 200,000 Common Shares. The
purchase of the Units by Ionic was made for investment purposes. Ionic may, from
time to time, acquire additional securities of the Corporation, dispose of some
or all of the existing or additional securities it holds or will hold, or may
continue to hold its current position. For further information or to obtain a
copy of the early warning report filed in connection with the above, a copy may
be found under the Corporation's profile on SEDAR at www.sedar.com.


The purchase of Units by Ionic is a related party transaction puruant to
Multilateral Instrument 61-101, Protection of Minority Holder in Special
Transactions ("MI 61-101") and is exempt from both the formal valuation and
minority approval requirements pursuant to subsections 5.5(a) and 5.7(a) of MI
61-101.


The Company intends to use the funds raised from the issuance of the Units to
finance potential acquisitions of new properties, for the Company's Paxson gold
project in Alaska and for general working capital purposes.


ON BEHALF OF THE BOARD OF DIRECTORS OF RHYOLITE RESOURCES LTD.

Richard Graham, Director, President and CEO

Forward-looking information: Except for statements of historical fact, all
statements in this news release, without limitation, regarding intended use of
proceeds of the funds raised from the issuance of the Units including the
potential acquisition of new properties are forward-looking statements which
involve risks and uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond the control of
Rhyolite, including, but not limited to the impact of general economic
conditions, industry conditions, volatility of commodity prices, exploration
risk, currency fluctuations, dependence upon regulatory approvals, the
availability of future financing and competition from other industry
participants for capital services and new properties. Readers are cautioned
about the assumptions used in the preparation of such information, and except as
required by applicable securities legislation, the Company undertakes no
obligation to publically update or revise forward-looking information, whether
as a result of new information, future events or otherwise.
Rhyolite Resources (TSXV:RYE)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024