Rio Silver Signs US$25 M LOI for Expenditures at Ninobamba Project in Peru, Announces Private Placement
Rio Silver Inc. (RYO.V) has entered into a non-binding letter of intent with a public mining company whereby, subject to regulatory approval, the Optionee may initially earn a 51% interest in Rio Silver's Peruvian Subsidiary Minera Rio Plata S.A.C. which holds title to the Ninobamba Silver and Gold property by completing exploration expenditures and financial commitments totalling US $25 million over a five year period. The LOI is further subject to due diligence by the parties after which the parties intend to enter into a definitive agreement.
The LOI obligate the optionee to make the following payments to Rio Silver,
(i) US $100,000 upon the signing of the LOI,
(ii) US $250,000 upon the signing the Definitive Agreement
(iii) subscribe for units of the Company in the amount of C$500,000
under the Company's offering
(iv) C$500,000 payment or exercise of Series A warrants to be issued
under the Offering
(v) C$500,000 minimum payment or exercise of Series B warrants to be
issued under the Offering
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