(IN CANADIAN DOLLARS UNLESS OTHERWISE
STATED)
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, July 23, 2019 /CNW/ - Rio2
Limited ("Rio2" or the "Company") (TSXV: RIO;
OTCQX: RIOFF; BVL: RIO) is pleased to announce that
in connection with its previously announced bought deal private
placement financing, the Company and Cormark Securities Inc.
("Cormark") have agreed to increase the size of the previously
announced financing. The Company will now issue 55,000,000 units of
the Company (the "Units) at a price of $0.40 per Unit on a "bought deal" private
placement basis, for aggregate gross proceeds to the Company of
approximately $22.0 million (the
"Offering").
Each Unit will consist of one common share of the Company (a
"Common Share") and one-half of one Common Share Purchase Warrant
(each full warrant, a "Warrant"). Each Warrant will entitle the
holder to acquire one Common Share of the Company at an exercise
price of $0.50 for a period of 36
months following the closing of the Offering.
The Company has also increased the option granted to Cormark to
sell up to an additional 7,500,000 Units at the offering price up
to the closing date (the "Option"). In the event that the
Option is exercised in its entirety, the aggregate gross proceeds
of the Offering will be $25.0
million.
The Company also announces that Eric
Sprott has agreed to increase his subscription amount to
$9.8 million (from $9.2 million) and on completion of the increased
Offering will hold 19.9% of the issued and outstanding shares of
the Company on a partially diluted basis (excludes potential shares
issued from the Option).
The Offering is scheduled to close on or about August 13, 2019 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary regulatory and other approvals including the approval of
the TSX Venture Exchange.
The net proceeds of the Offering will be used to complete the
following activities for the Company's 100% owned Fenix Gold
Project; complete the Project's EIS baseline study, prepare and
file the EIS study with the Chilean authorities, complete
engineering studies in preparation for future mine construction
activities, commence permitting activities for the project,
commence the review of financing options for construction of the
project and continue social activities related to the project, as
well as for general corporate and working capital purposes.
This new release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"),
or any state securities laws and may not be offered or sold within
the United States or to or for the
account or benefit of a U.S. person (as defined in Regulation S
under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
To learn more about Rio2 Limited, please
visit: www.rio2.com or Rio2's SEDAR profile at
www.sedar.com.
ON BEHALF OF THE BOARD OF RIO2 LIMITED
Alex Black
President, Chief Executive Officer & Director
Tel: +1 (604) 260-2696
Email: info@rio2.com
Cautionary Statement on Forward-Looking Information
Certain information set forth in this news release contains
"forward-looking statements", and "forward-looking information
under applicable securities laws. Except for statements of
historical fact, certain information contained herein constitutes
forward-looking statements, which include expectations about the
timing and completion of the Offering; the use of proceeds from the
Offering; management's expectations with respect to the Offering;
which may prove to be incorrect. Some of the forward-looking
statements may be identified by the use of conditional or future
tenses or by the use of such words such as "will", "expects",
"may", "should", "estimates", "anticipates", "believes",
"projects", "plans", and similar expressions, including variations
thereof and negative forms. These statements are not guarantees of
future performance and undue reliance should not be placed on them.
Such forward-looking statements necessarily involve known and
unknown risks and uncertainties, which may cause Rio2's actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These
risks and uncertainties include, but are not limited to: risks and
uncertainties relating to the completion of the Transaction and the
Offering as described herein, and management's ability to
anticipate and manage the foregoing factors and risks. There can be
no assurance that forward-looking statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such statements. Rio2
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements. Rio2 disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise, except to the extent
required by securities legislation.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Rio2 Limited
