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
