Rio Silver raises $3M with Eric Sprott as lead investor

Rio Silver Inc. (TSX.V: RYO) (OTC: RYOOF) closed a $3 million private placement by issuing 8,571,429 units at $0.35 per unit, according to a company statement.

Each unit consists of one common share and one-half warrant. The warrants allow holders to purchase additional shares at $0.50 each for 24 months, with provisions for early expiry if the stock price reaches $0.75 or higher for 15 consecutive trading days. All securities are subject to a four-month hold period expiring July 28, 2026.

Eric Sprott, through 2176423 Ontario Ltd., acquired 5,714,285 units for approximately $2 million, representing his first investment in the company. Following the transaction, Sprott owns 10% of Rio Silver on an undiluted basis and 14.3% assuming full exercise of his warrants.

The Vancouver-based company plans to use proceeds for advancing its Maria Norte Project in Peru, including access development and metallurgical programs, plus general working capital.

No finder's fees or commissions were paid in connection with the offering. Sprott indicated the securities are held for investment purposes with a long-term view, noting he may acquire additional shares or sell holdings depending on market conditions and other factors.

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