Business
Rhyolite Resources Ltd. Announces Additional Prospectus Exemption for Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - February 16, 2017) - Rhyolite Resources Ltd. ...
About this update from Rhyolite Resources Ltd.
[{"type":"text","content":"\nRhyolite Resources Ltd. Announces Additional Prospectus Exemption for Brokered Private PlacementVancouver, British Columbia--(Newsfile Corp. - February 16, 2017) - Rhyolite Resources Ltd. (TSXV: RYE) (\"Rhyolite\" or the \"Company\") — Further to its news release of January 24, 2017 (the \"Prior Press Release\"), the Company further reports that a portion or all of the Offering (as defined below) may be completed pursuant to Multilateral CSA Notice 45-318 — Prospectus Exemption for Certain Distributions through an Investment Dealer (\"CSA 45-318\") and the corresponding instruments, orders and rules implementing CSA 45-318 in the participating jurisdictions in respect thereof (collectively with CSA 45-318, the \"Investment Dealer Exemption\").As described in the Prior Press Release, the Corporation intends to conduct a brokered private placement through Leede Jones Gable Inc. of a minimum of 10,000,000 units (\"Unit\") up to a maximum of 16,000,000 Units at a price of $0.10 per Unit for gross proceeds of between $1 million and $1.6 million (the \"Offering\"). Each Unit will be comprised of one (1) common share of Rhyolite and one-half (1/2) share purchase warrant of Rhyolite (\"Warrant\"). Each Warrant shall entitle the holder thereof to acquire one additional common share of Rhyolite at an exercise price of $0.15 per share at any time on or before the date which is 24 months after the closing date of the Offering. The principal use of the proceeds of the Offering will be for general corporate purposes and future working capital.The Company intends to use the proceeds of the Offering as follows:Up to $500,000 for the evaluation of potential acquisition targets and project investigations; and With the remaining $500,000 up to a maximum of $1.1 million for general corporate purposes and future working capital.In addition to the Investment Dealer Exemption, the Company plans to conduct the Offering in reliance on other available exemptions from the prospectus requirements of applicable securities legislation, including sales to accredited investors and close personal friends and business associates of directors and officers of the Company. All securities issued in connection with the Offering will be subject to statutory hold periods in accordance with applicable Canadian securities laws for a minimum of four months...