Rio Silver to settle $293,250 debt with securities

Executive Summary

• Rio Silver Inc. proposes to settle an aggregate of $293,250 in indebtedness owed to arm's-length and non-arm's-length creditors through the issuance of common shares and share purchase warrants.
• The transaction involves issuing 1,396,428 common shares at a deemed price of $0.21 per share and 420,238 warrants, subject to TSX Venture Exchange approval.
• The primary objective of the transaction is to improve the company's current working capital deficiency position.

Key Details

• Total Debt Settled: $293,250
• Common Shares Issued: 1,396,428 shares total
  • Deemed Price: $0.21 per common share
  • Allocation: 976,190 shares issued to non-arm's-length creditors; the remainder issued to arm's-length creditors.
• Warrants Issued: 420,238 common share purchase warrants
  • Exercise Price: $0.28 per common share
  • Term: Three years from the date of issue
• Hold Period: Four months and one day from the date of issuance for all common shares and warrants.
• Regulatory Status: Subject to approval by the TSX Venture Exchange.
• Strategic Rationale: To improve the company's current working capital deficiency position.

Notable Quotes

• None provided in the text.