Rio Silver issues 1.39 million shares for debt

Executive Summary

• Rio Silver Inc. has settled an aggregate of $293,250 in indebtedness through the issuance of common shares and share purchase warrants.
• The transaction involves issuing 1,396,428 common shares at a deemed price of 21 cents per share and 420,238 warrants exercisable at 28 cents per share.
• The company states that completing this transaction will help improve its current working capital deficiency position.

Key Details

• Total Indebtedness Settled: $293,250
• Common Shares Issued: 1,396,428 shares
  • Deemed Issuance Price: $0.21 per share
  • Non-Arm's-Length Creditors: 976,190 shares issued to non-arm's-length creditors
• Share Purchase Warrants Issued: 420,238 warrants
  • Exercise Price: $0.28 per share
  • Underlying Shares: Entitles holders to purchase 420,238 common shares
  • Expiration Date: December 31, 2028
  • Non-Arm's-Length Creditors: None of the warrants were issued to non-arm's-length creditors
• Hold Period: All common shares and share purchase warrants issued are subject to a hold period expiring May 1, 2026
• Strategic Impact: Completion of the transaction allows the company to improve its current working capital deficiency position