VANCOUVER, April 29, 2015 /CNW/ - Rio Cristal Resources
Corporation (TSXV:RCZ) ("Rio
Cristal" or the "Company") announces the closing
of the Units for Debt Transaction ("Debt Transaction") and private
placement (the "Private Placement') approved by the Shareholders on
February 26, 2015.
In connection with the Debt Transaction, the Company issued
25,618,106 units for debt (each a "Debt Unit") at a deemed price of
$0.05 per Debt Unit. Each Debt
Unit is comprised of one common share and one common share purchase
warrant (a "Debt Warrant"), to settle an aggregate debt of
$1,280,905.36 owing to 25022011 Ltd.
(formerly Augusta Investments Inc. ("2502011") and Iris Consulting
Limited ("Iris"). The Debt Warrants will have an exercise price of
$0.05 per common share and will be
exercisable for a period of five years expiring on April 29, 2020. The Debt Units are subject
to escrow as required by policy 5.4 of the TSX Venture
Exchange.
As part and parcel of the Debt Transaction, the Company
completed a non-brokered private placement for $200,000 under which the Company issued 4,000,000
units ("Private Placement Units") at a deemed price of $0.05 per Private Placement Unit. Each Private
Placement Unit is comprised of one common share and one common
share purchase warrant (a "Private Placement Warrant"). The Private
Placement Warrants have an exercise price of $0.08 per common share for a period of three
years expiring on April 29, 2018. As
required under securities regulations, the securities (and all
underlying securities) issued in connection with the Private
Placement Units are subject to a four month hold period expiring on
August 30, 2015. The proceeds of the
Private Placement Units will be used to fund general corporate
purposes.
About Rio Cristal Resources Corporation
Rio Cristal Resources Corporation is a Canadian company listed
on the TSXV under the symbol RCZ.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This release contains forward-looking statements as that term is
used in Canadian securities law. Often, but not always,
forward-looking statements can be identified by the use of words
such as "expected", "will" or variations of such words and phrases.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual
results, performance, or achievements of the Company to be
materially different from any future results, performance, or
achievements expressed or implied by the forward-looking
statements. These statements are based on management's current
expectations and beliefs and are subject to a number of risks and
uncertainties. Examples of forward-looking information in this news
release include, but are not limited to, statements with respect to
the use of proceeds. For additional information on risks and
uncertainties, see the Company's MD&A for the year ended
March 31, 2014, which is available on
SEDAR at www.sedar.com. The risk factors identified in the
Company's annual MD&A are not intended to represent a complete
list of factors that could affect the Company. Accordingly, readers
should not place undue reliance on forward-looking statements. The
Company does not assume any obligation to update the
forward-looking information contained in this press release.
SOURCE Rio Cristal Resources Corporation