Jan 29 2011
Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) announces that it has completed its previously reported, non-brokered private placement of 3,893,000 units of the Company in London.
The price of each unit was C$0.16 per Unit, each Unit consisting of one common share (a "Share") and one-half warrant (each whole such warrant, a "Warrant") for total proceeds of C$622,880. The Company intends to use the proceeds from the placement for general corporate purposes.
Each Warrant entitles the holder thereof to purchase one additional Share (a "Warrant Share") at an exercise price of C$0.22 per Warrant Share for a period of two years, and is subject to acceleration. Commencing on the date that is four months and one day after the closing of the private placement, if the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange (the "Exchange") is at a price greater than C$0.32 for a period of ten (10) consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving written notice to the holders of the Warrants which will then expire on the date that is not less than thirty (30) days from the date of the notice.
The securities are subject to a hold period and may not be traded until May 21, 2011, except as permitted by Canadian securities legislation and the TSX Venture Exchange.
The Company paid a C$43,602 finder's fee and granted 272,510 Warrants in connection with the private placement. The Warrants are exercisable under the same conditions as the Warrants included in the private placement Units.
No directors and officers of the Company acquired securities under the private placement.
Source: Rio Cristal Resources Corporation