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Rhyolite Resources Announces C$18 million Private Placement Financing
VANCOUVER, British Columbia, Dec. 07, 2021 (GLOBE NEWSWIRE) -- Rhyolite Resources Ltd. (TSXV: RYE) (“Rhyolite” or the “Company”) has announced today that it has
About this update from Rhyolite Resources Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia, Dec. 07, 2021 (GLOBE NEWSWIRE) -- Rhyolite Resources Ltd. (TSXV: RYE) (“Rhyolite” or the “Company”) has announced today that it has entered into an agreement with BMO Capital Markets (“BMO”), under which BMO has agreed to buy on a bought deal basis by way of private placement, 16,000,000 common shares (the “Common Shares”) of the Company, at a price of C$0.88 per Common Share (the “Offering Price”) for gross proceeds of approximately C$14 million (the “Bought Deal Private Placement”). Rhyolite is also undertaking a non-brokered private placement of approximately C$4 million at a price per Common Share equal to the Offering Price (the “Non-Brokered Private Placement”, and together with the Bought Deal Private Placement, the “Offering”). In addition, the Company has also granted BMO an option, exercisable up to 48 hours prior to the closing of the Offering, to purchase up to an additional 4,500,000 Common Shares purchased pursuant to the Bought Deal Private Placement. The Company intends to use the net proceeds of the Offering for furthering engineering work on Muckahi, procurement of Muckahi equipment, exploration in Suriname, and corporate purposes. The Offering is expected to close on or about December 21, 2021 and is subject to Rhyolite receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. Forward-Looking Statements This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the closing of the Offering and the use of proceeds of the Offering. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause t...