Company sells 30,416,666 ordinary shares at C$0.42, an 82.61% premium
By Devika Patel
Knoxville, Tenn., June 28 - Rio Verde Minerals Development Corp. said it completed a C$12.78 million non-brokered private placement of stock. The deal priced for C$15 million on May 25.
The company sold 30,416,666 ordinary shares at C$0.42 apiece, which is an 82.61% premium to the May 24 closing share price of C$0.23.
AGN Agroindustrial, Projetos e Participacoes Ltda. is among the investors.
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.
"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 at pricing. "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: | Ordinary shares
|
| Amount: | C$12,775,000
|
| Shares: | 30,416,666
|
| Price: | C$0.42
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | AGN Agroindustrial, Projetos e Participacoes Ltda.
|
| Pricing date: | May 25
|
| Settlement date: | June 28
|
| Stock symbol: | Toronto: RVD
|
| Stock price: | C$0.23 at close May 24
|
| Market capitalization: | C$19.93 million
|
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