Rio Silver closes $3-million private placement

Executive Summary

• Rio Silver Inc. has closed a non-brokered private placement raising $3.0 million in gross proceeds.
• The offering was led by Eric Sprott (via 2176423 Ontario Ltd.), who acquired approximately 10% of the company on an undiluted basis.
• Proceeds are designated for the advancement of the Maria Norte project in Peru, including access development, metallurgical programs, and general working capital.

Key Details

• Gross Proceeds: $3,000,000
• Units Issued: 8,571,429 units
• Price Per Unit: $0.35 CAD
• Unit Composition: Each unit consists of one common share and one-half of a common share purchase warrant.
• Warrant Terms:
  • Each warrant is exercisable to purchase one additional common share.
  • Exercise Price: $0.50 CAD per share.
  • Term: 24 months from the date of issue.
  • Early Expiry Condition: If the closing price on the TSX Venture Exchange is $0.75 or higher for 15 consecutive trading days, warrants expire 30 calendar days after notice.
• Hold Period: All securities are subject to a statutory four-month hold period expiring on July 28, 2026.
• Transaction Costs: No finders' fees or commissions were paid.
• Lead Investor Details:
  • Eric Sprott (via 2176423 Ontario Ltd.) acquired 5,714,285 units.
  • Total Consideration by Sprott: $1,999,999.75.
  • Pre-offering ownership: None.
  • Post-offering ownership: 5,714,285 common shares and 2,857,143 warrants.
  • Ownership Percentage: ~10.0% on an undiluted basis; ~14.3% on a partially diluted basis (assuming full warrant exercise).
• Use of Proceeds: Advancement of the Maria Norte project in Peru, access development, metallurgical programs, and general working capital.

Notable Quotes

• None provided in the text.