Rio Silver receives conditional approval for $2.2M private placement

Rio Silver Inc. (TSX-V: RYO) (OTC: RYOOF) announced it received conditional approval from the TSX Venture Exchange to close its non-brokered private placement for gross proceeds of $2.2 million.

The offering involves issuing 22 million units at 10 cents per unit. Each unit consists of one common share and one warrant exercisable at 15 cents per share for three years from closing. The company may accelerate warrant expiry if shares close at or above 25 cents for 15 consecutive trading days.

Rio Silver will pay finders' fees of $74,520 and issue 745,200 broker warrants exercisable at 15 cents per share for three years to parties who located purchasers for the offering.

The company plans to use proceeds to acquire and advance exploration projects in south central Peru, for working capital, and debt settlement. Securities from the offering are subject to a four-month hold period under Canadian securities laws.

The offering requires final approval from the TSX Venture Exchange. Rio Silver also expects exchange approval for its acquisition of the Maria Norte gold-silver-lead-zinc project in the coming days.

The Vancouver-based resource development company focuses on identifying precious metal assets in Peru that may generate near-term cash flow to support exploration and development plans.

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