Company says investor interest was 'excellent'
By Devika Patel
Knoxville, Tenn., Aug. 31 - Rio Cristal Resources Corp. said it completed a $3.28 million non-brokered private placement of units. The deal priced for $2.8 million on Aug. 20.
The company sold 38,636,450 units at $0.085 per unit. Each unit consists of one common share and one half-share warrant.
The whole two-year warrants are exercisable at $0.115. The strike price represents a 21.05% premium to the Aug. 19 closing share price of C$0.095.
Proceeds will be used for drilling and other exploration at the company's Bongara zinc and Condor gold projects and for general corporate purposes.
"The interest we received in our private placement was excellent, especially considering the current difficult financial market conditions for early stage exploration companies," president and chief executive officer Thomas Findley said in a press release. "The capital that we have raised will allow us to resume drilling at our flagship Bongara zinc project and to initiate drilling at our Condor gold project.
"We will also continue our technical review of the La Cumbre copper property. Approximately 85% of the placement was in Lima with the balance coming from Toronto and London."
Vancouver, B.C.-based Rio Cristal is a gold, copper and zinc exploration company.
Issuer: | Rio Cristal Resources Corp.
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Issue: | Units of one common share and one half-share warrant
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Amount: | $3,284,098
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Units: | 38,636,450
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Price: | $0.085
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Warrants: | One half-share warrant per unit
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Warrant expiration: | Two years
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Warrant strike price: | $0.115
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Agent: | Non-brokered
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Pricing date: | Aug. 20
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Settlement date: | Aug. 31
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Stock symbol: | TSX Venture: RCZ
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Stock price: | C$0.095 at close Aug. 19
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Market capitalization: | C$7.01 million
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