Rio Silver closes $2.2-million private placement

Executive Summary

• Rio Silver Inc. has closed its non-brokered private placement, issuing 22 million units at $0.10 per unit for gross proceeds of $2.2 million.
• Each unit consists of one common share and one share purchase warrant exercisable at $0.15 per share for three years, subject to an early expiry clause if the share price hits $0.25 for 15 consecutive days.
• Proceeds are designated for the exploration and development of projects in Peru and the Gerow Lake project in Northern Ontario, as well as general working capital, with specific restrictions on the Maria Norte project pending TSX Venture Exchange approval.

Key Details

• Units Issued: 22,000,000 units.
• Price Per Unit: $0.10.
• Gross Proceeds: $2,200,000.
• Warrant Terms:
  • Each unit includes one share purchase warrant.
  • Exercise Price: $0.15 per common share.
  • Term: Three years from the date of issue.
  • Early Expiry Condition: If the closing price of common shares is $0.25 or higher for 15 consecutive trading days, warrants expire 30 calendar days after notice.
• Finder’s Fees:
  • Cash paid: $70,920.
  • Warrants issued: 709,200 finders' warrants (same terms as investor warrants).
• Hold Period: All securities are subject to a statutory four-month hold period expiring on March 12, 2026.
• Use of Proceeds:
  • Exploration and development of projects in Peru.
  • Exploration and development of the Gerow Lake project in Northern Ontario.
  • General working capital purposes.
• Restrictions: Proceeds will not be used for the Maria Norte project until TSX Venture Exchange approval is obtained for the acquisition (previously announced on March 26, June 25, Aug. 12, and Sept. 17, 2025).