Rio Silver Announces Convertible Note Financing
02 November 2022 - 8:25AM
Rio Silver Inc. (“Rio Silver” or the “Company”) (TSX.V: RYO)
announces that the Company intends to issue up to $200,000 in
convertible notes (the “Notes”) on a non-brokered private placement
basis (the “Private Placement”). Each Note will be convertible at
the option of the holder into one common share (a “Share”) of the
Company at a conversion price of $0.05 per Share during the first
year of the Notes and $0.10 during the second year of the Notes.
The Notes will mature in two years from the date
of issuance and bear interest at the rate of 18% per annum, payable
quarterly, until the Notes are converted or repaid. The Company
will be entitled to repay, without any penalty, any portion of the
principal amount of the Notes, together with accrued and unpaid
interest (the “Prepayment Amount”), at any time commencing four
months after the date of issuance, subject to giving the holders
prior notice of [*] days (the “Notice Period”) thereof to permit
holders to convert the Prepayment Amount during the Notice Period.
The Notes will be unsecured and transferable, subject to resale
restrictions under applicable securities laws and TSX Venture
Exchange requirements. It is anticipated that one or more insiders
of the Company will subscribe pursuant to the financing.
The Company plans to use the funds from the
financing to fund ongoing operations and for general working
capital purposes. All securities issued in connection with the
Private Placement will be subject to a statutory hold period of
four months commencing from the date of issuance of the
Notes. Closing of the Private Placement is subject to
customary conditions, including TSX Venture Exchange
acceptance.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy nor shall there be any
sale of any of the Shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The Shares have not been
and will not be 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 within the United
States or to, or for the benefit of, U.S. persons (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or
pursuant to an exemption from such registration requirements.
About Rio Silver
Rio Silver Inc. is a Canadian exploration and
mine development company. Our business is to develop our 100%-owned
Ninobamba project in Peru and to unlock the tremendous potential
for shareholder value identified from the previous $10 million
spent by Newmont and others at both Ninobamba Main and Jorimina
zones. Our own recently commissioned and independently constructed
“exploration potential” model for Ninobamba Main has identified
more development potential. Benefits are also expected to soon
materialize from the carried development of the new Palta Dorada Au
Ag project, focusing on a near-term revenue stream. For more
information, please visit: https://www.riosilverinc.com/
For more information contact:
Christopher Verrico, President, CEO Tel: (604) 762-4448Email:
chris.verrico@riosilverinc.com
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.
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