Rio Silver Announces Proposed Shares for Debt Transaction

Executive Summary

• Rio Silver Inc. proposes to settle $293,250 of indebtedness by issuing 1,396,428 common shares at a deemed price of $0.21 per share and 420,238 common share purchase warrants priced at $0.28 per share.
• 976,190 of the issued shares will go to non‑arm’s length creditors; the remaining shares and all warrants are subject to a four‑month‑plus hold period.
• Completion of the transaction (subject to TSX Venture Exchange approval) is intended to improve the company’s working capital position.

Key Details

• Debt Amount: $293,250 total indebtedness to be settled.
• Equity Issuance: 1,396,428 common shares at a deemed price of $0.21 per share.
• Warrants Issued: 420,238 common share purchase warrants; each warrant exercisable at $0.28 per share for three years from issuance.
• Allocation of Shares: 976,190 common shares (no warrants) to be issued to non‑arm’s length creditors; the balance to arm’s length creditors.
• Hold Period: All issued shares and warrants will be subject to a lock‑up of four months and one day from issuance.
• Regulatory Condition: Transaction pending approval by the TSX Venture Exchange.
• Purpose: To address and improve the company’s current working capital deficiency.

Notable Quotes

• “Completion of the Transaction will allow the Company to improve its current working capital deficiency position.” – Chris Verrico, Director, President and CEO.