Rio Silver is pleased to announce that it has closed the previously announced non-brokered private placement for gross proceeds of $160,000.
Rio Silver Inc. (“Rio Silver” or the “Company”) (TSXV:RYO) is pleased to announce that it has closed the previously announced non-brokered private placement (the “Financing”) for gross proceeds of $160,000. The proceeds of which will be used to fund ongoing operational expenditures, demand loan payments and critical sustaining costs including concession taxes in Peru.
Upon the completion of the Financing the Company issued 6,400,000 units, (the “Units”) at a price of $0.025 per Unit. Each Unit consists of one common share and one transferable share purchase warrant. Each whole warrant is exercisable into one additional common share of the Company at a price of $0.08 per share until May 12, 2022.
The Company paid finders’ fees of $2,000 in cash and issued 40,000 broker warrants, with each such broker warrant entitling the holder thereof to acquire one common share of the Company at a price of $0.08 per share until May 12, 2022.
The securities issued under the Financing will be subject to a statutory hold until September 12, 2020.
Additionally, the Company announces that by order of the Government of Peru, lockdown conditions continue to be in place until May 24, 2020. At that time, the mining industry will be allowed a structured return to work under strict industry standards, to combat further spread of COVID-19. By early adoption of necessary protocol, the contractor selected will begin a bulk sampling campaign at the companies Palta Dorada Gold & Silver Project. In addition, the Company will regain access to corporate offices in Peru enabling auditors to complete the filing of the year end financials.
The Company is also pleased to note that its VP of exploration, Ryan Grywul P.Geo., is a resident of Peru, thus allowing the full exploration activity to resume (when permitted), unrestricted by international travel issues that are now assumed to continue for the balance of the year. Management remains hopeful that plans for an initial drilling campaign, at its flagship holding, Ninobamba Gold Silver project in Southern Peru, are still possible for later this year.
For more information contact:
Christopher Verrico, President, CEO
Tel: (604) 762-4448
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.