Rio Silver Inc. Announces Close of Second and Final Tranche of Private Placement and Grant of Incentive Stock Options
19 July 2023 - 9:53AM
Rio Silver Inc. ("Rio Silver" or the "Company") (TSX.V: RYO) is
pleased to announce that it has closed the second and final tranche
of its previously announced non-brokered private placement (the
"Offering") subject to regulatory approval.
In connection with the completion of the second
tranche, the Company issued an aggregate of 1,588,000 units (the
"Units") of the Company at a price of $0.05 per Unit for gross
proceeds of $79,400. Each Unit consists of one common share of the
Company and one common share purchase warrant (a "Warrant"). Each
Warrant is exercisable into one additional common share of the
Company at a price of $0.08 per share until January 17, 2025 unless
the closing price of the common shares of the Company is $0.15 or
higher on the TSX Venture Exchange (the “Exchange”) for 15
consecutive trading days any time after the date that is four
months after closing, in which case the Warrants will expire 30
calendar days after notice to the Warrant holders through a news
release announcing an earlier expiry date. The securities issued
under the second tranche will be subject to a statutory hold until
November 18, 2023.
The proceeds from the Offering will be used to
fund the Company’s ongoing business operations and for general
working capital purposes. No finder’s fees were paid in connection
with the Offering.
Three insiders of the Company participated in
the Offering, namely: a company controlled by Christopher Verrico,
CEO and a director of the Company, purchased an aggregate of
3,160,000 Units; Steve Brunelle, a director of the Company,
purchased an aggregate of 1,160,000 Units; and Richard Mazur, a
director of the Company, purchased an aggregate of 1,728,000 Units.
The Offering is a "related party transaction" within the meaning of
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The issuance of the
securities comprising the Units to the insiders is exempt from the
valuation requirements and the minority approval requirements of MI
61-101 by virtue of the exemptions in sections 5.5(a) and 5.7(1)(a)
of MI 61-101, by virtue of the fair market value of the
consideration for the Units being less than 25% of the Company’s
market capitalization.
The Company also announces that it has granted
an aggregate of 3,550,000 incentive stock options to directors,
officers and other consultants of the Company exercisable at a
price of $0.05 with the following exercise periods: (i) one year as
to 1,350,000 options; (ii) two years as to 450,000 options; and
(iii) five years as to 1,750,000 options, from the date of grant.
The grant of these options is subject to the approval of the
Exchange.
Neither the 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.
For more information contact:
Christopher Verrico, President, CEO
Tel: 604.762.4448
Email: chris.verrico@riosilverinc.com
Website: www.riosilverinc.com
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