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Rio Silver Signs US $25 Million Letter of Intent for Expenditures at its Ninobamba Project in Peru and Announces Private Placement
Rio Silver Signs US $25 Million Letter of Intent for Expenditures at its Ninobamba Project in ...
About this update from Rio Silver Inc.
[{"type":"text","content":"\nRio Silver Signs US $25 Million Letter of Intent for Expenditures at its Ninobamba Project in Peru and Announces Private Placement\n\nRio Silver Signs US $25 Million Letter of Intent for Expenditures at its Ninobamba Project in Peru and Announces Private Placement\nToronto, Ontario CANADA, April 05, 2013 /FSC/ - Rio Silver Inc.  (RYO - TSX Venture), (\"Rio Silver\" or the \"Company\") is pleased to announce that it has entered into a non-binding letter of intent (the \"LOI\") with a public mining company (the \"Optionee\") whereby, subject to regulatory approval, the Optionee may initially earn a 51% interest in Rio Silver's Peruvian Subsidiary Minera Rio Plata S.A.C. (\"Minera\") which holds title to the Ninobamba Silver and Gold property (\"Ninobamba\" or the \"Property\") by completing exploration expenditures and financial commitments totalling US $25 million over a five year period.  The LOI is further subject to due diligence by the parties and upon completion of due diligence review, the parties intend to enter into a definitive agreement (the \"Definitive Agreement\") containing standard industry terms.\nThe Ninobamba property covers 2100 hectares and is 100% owned with no underlying royalties. It is located approximately 330 kilometres southeast of Lima, in the Department of Ayacucho, Peru. The Company views the project as a bulk mineable disseminated silver-gold target. In total seventeen trenches were excavated by the local community during the 2012 exploration campaign and the results were summarized in a news release issued January 14, 2013. \nUnder the terms of the LOI, the Optionee has the option to acquire a 51% interest in Minera by completing an exploration program with eligible expenditures amounting to US$25,000,000 including certain payments listed below. Eligible exploration expenditures include, but are not limited to community relations, environmental studies, geological mapping and trenching, successive drilling and metallurgical programs with the purpose of defining a mineral resource to justify an economic assessment. The terms of the LOI also include the requirement to complete a minimum of 4,000 metres of diamond drilling within one year of receiving the initial drilling permit and an additional 6,000 metres of diamond drilling by the end of the second year subject to receipt of...