I have been following this company which going through some changes. Seems to be some good volume of late, the following press release dicusses some of these changes. I feel current property holdings and current share price looks good. Any comments?
FOR: RIO AMARILLO MINING LTD.
VSE SYMBOL: RIO
FEBRUARY 7, 1997
Rio Amarillo Mining Closes Private Placement
VANCOUVER, BRITISH COLUMBIA--Rio Amarillo Mining Ltd. ("RIO")
(the" Company") announces that on February 7, 1997, it closed a
non- brokered private placement of 500,000 units to James K.
Wright, the President and Chief Executive Officer of the Company,
at the price of $0.48 per unit, which had been previously
announced in a press release dated December 17, 1996. Each unit
consists of one Common share and one share purchase warrant which
will enable Mr. Wright to purchase an additional Common share of
the Company at the price of $0.48 for a period of one year after
the date of closing. The securities issued to Mr. Wright are not
subject to any hold periods under the Securities Act (British
Columbia), other than those applicable to Mr. Wright as a control
person of the Company.
RIO is in the process of restructuring its South American
operations and has temporarily curtailed exploration activities.
RIO also announces that it has closed its Bolivian office
effective January 31, 1997 as part of the cost reduction program.
All staff associated with the office have been laid-off from the
Company including the General Manager. RIO will maintain its
interests in the Chachacomiri and Cana concessions and will seek
joint venture partners for both projects. In Peru, the exploration
office has been reduced to a staff of three employees who will
oversee the ongoing maintenance of RIO's property positions in
Ecuador, Bolivia and Peru. Several of the former exploration staff
will remain available to the Company, on an "as required" contract
basis, to evaluate new property acquisitions or to carry out
additional work on RIO's properties. RIO has also reduced the
size of its Ecuadorian office and the General Manager has been
laid- off. RIO will continue to work on its 100 percent-owned
Portovelo and Guabisay projects in Ecuador but will focus
primarily on the Guabisay property.
As reported in a News Release on January 15, 1997, the Company
will recommence drilling at the Guabisay Project, when weather and
financial conditions permit, where the first diamond drill hole in
the Gigantones zone intersected 34.5 metres, from 69.0 metres to
103.5 metres, grading 3.12 g/Mt gold, 35.8 g/Mt silver and 0.49
percent copper. The hole was stopped at a depth of 103.5 metres in
December 1996 as part of the cost reduction program. The
mineralized intercept was encountered 20 metres prior to the
projected intersection from surface geology and the hole is
projected to continue in the N30E fracture zone for the next 70-80
metres before crossing into wallrock. The exposed rocks in the
Gigantones zone are rhyolite volcanics intruded by granodiorite.
Intense sericitic, argillic and silicic alteration has obliterated
the original rock textures in the area. The mineralization found
at Gigantones is associated with a wide fracture zone trending
N30E and averaging over 100 metres in width where it can be mapped
at surface.
The first drill hole was drilled toward the centre of a
geochemical and rock anomaly zone measuring 200 metres by 100
metres. A series of 53 rock chip and channel samples, taken over
average lengths of 1- 2 metres, from outcrops and small adits
within this zone assayed 1.81 g/Mt gold, 56.6 g/Mt silver and 0.36
percent copper. The Gigantones zone was the site of small artisan
mining activities in the mid- 1980's.
RIO is a mineral exploration and development company engaged in
locating, evaluating, acquiring, and, contingent upon obtaining
satisfactory exploration program results, developing mineral
properties in South America. The Company aggressively seeks value
added opportunities on its own or with others in areas of its
primary focus.
On Behalf of the Board of Directors of
RIO AMARILLO MINING LTD.
James K. Wright, President
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