Business
Rio2 Limited Closes Final Tranche of Non-Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, British Columbia, March 13, 2019 (GLOBE NEWSWIRE) -
About this update from Rio2 Limited
[{"type":"text","content":" NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, British Columbia, March 13, 2019 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; BVL:RIO) is pleased to announce that it has closed the second and final tranche of its non-brokered private placement previously announced on February 14, 2019 (the “Offering”). Together with the first tranche closing, the Company issued 15,217,391 Units for an aggregate gross proceeds of $7,000,000. Pursuant to the closing of this tranche, the Company issued 2,593,866 units (“Units”) at $0.46 per Unit for a total gross proceeds of $1,193,178. Each Unit consists of one common share of Rio2 (“Common Share”) and one whole Common Share purchase warrant (“Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Common Shares at a price of $0.65 per Common Share for a period of two years following the issuance of the Warrant. Jose Luis Martinez, Executive Vice President, commented: “We are pleased to see that this has been a successful transaction given the challenging market conditions. We are thankful to existing shareholders and a number of new institutional and retail investors predominantly from US, UK and Europe that have enabled us to exceeded our initial financing target size and expand our investor base.” The Corporation will use the net proceeds of the Offering for work and studies in connection with completion of an updated resource estimate for the Company’s Fenix Gold Project, including the 7,000 meter drilling program and surface sampling program, and the Company’s ongoing water options study and environmental baseline studies and for general working capital purposes, including expenses of the Offering. Finders acting in connection with the closing of this tranche received a finder’s fee in the aggregate total amount of $56,784. The Common Shares and the Warrants issued pursuant to the Offering, and any Common Shares issued upon the exercise of Warrants, would be subject to a hold period of four months plus one day from the date of issuance, except as permitted by applicable securities legislation and the rules of the TSX Venture Exchange (the “TSXV”). Completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory appr...