VANCOUVER , Oct. 22, 2019 /CNW/ - Rio Silver Inc. ("Rio Silver" or the "Company") (RYO.V) is pleased to announce that, further to its previous announcement on September 3, 2019 , its private placement of up to 10,000,000 units ("Units") of the Company at $0.05 per Unit for gross proceeds of up to $500,000 (the "Offering") is now oversubscribed by an additional 1,520,000 Units or $76,000 in gross proceeds.
Each Unit will consist of one common share of the Company and one common share purchase warrant (each, a "Warrant") of the Company. Each Warrant will entitle the holder to acquire one additional common share of the Company at a price of $0.07 per share for a period of 18 months from issuance, unless the closing price of the common shares of the Company is $0.15 or higher for twenty (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 Warrant holders announcing an earlier expiry date.
It is anticipated that certain insiders of the Company will participate in the Offering. The proceeds from the Offering will be used to (i) continue its modest work on the Company's Niñobamba silver and gold project in Peru ; (ii) meet its immediate financial obligations and for working capital; and (iii) explore new projects in Peru .
The Company may pay certain finders' fees in connection with a portion of the Offering subject to the policies of the TSX Venture Exchange (the "Exchange"). The securities issued herein will be subject to a four month statutory hold period. The closing of the Offering is subject to the approval of the Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS OF RIO SILVER INC.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider 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 guarantees 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
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