Investors have committed for C$11 million of non-brokered offering
By Devika Patel
Knoxville, Tenn., May 25 - Rio Verde Minerals Development Corp. said it plans a C$15 million non-brokered private placement of stock. Of the proceeds, C$11 million has been committed.
The company will sell 35,714,285 common shares at C$0.42 apiece, which is an 82.61% premium to the May 24 closing share price of C$0.23.
Settlement is expected June 15.
Proceeds will be used for exploration and pre-feasibility studies at the Sergipe Potash Project, to continue exploration of the company's portfolio of phosphate prospects, for development of the Fosfatar Phosphate Project and for working capital purposes.
"With this financing in place, we will be able to comfortably execute an expanded exploration and development program at our potash and phosphate projects, greatly increasing our ability to return value to our shareholders," chief executive officer Stephen Keith said in a press release. "In these volatile markets, the ability to strengthen our balance sheet and execute our exploration and development plan gives us a strong advantage in the market."
Toronto's Rio Verde develops fertilizer projects.
| Issuer: | Rio Verde Minerals Development Corp.
|
| Issue: | Common shares
|
| Amount: | C$15 million
|
| Shares: | 35,714,285
|
| Price: | C$0.42
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | May 25
|
| Settlement date: | June 15
|
| Stock symbol: | Toronto: RVD
|
| Stock price: | C$0.23 at close May 24
|
| Market capitalization: | C$25.82 million
|
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