Two private placements to raise $487,500
Rio Amarillo Mining Ltd RIO
Shares issued 11,683,125 May 7 close $0.34
Thu 8 May 97 News Release
Mr James Wright reports
Two private placements have been signed to raise $487,500. A.R. Rule Investments (BC) Ltd will subscribe for 1,000,000 nits at $0.30, each unit consisting of one share and one warrant. Each warrant entitles the holder to acquire one share at $0.30 for one year and at $0.35 for the second year. Rule also has the right of first offer, for a period of one year, to purchase up to 1,500,000 shares and 1,500,000 warrants to purchase shares which are offered by the company. The purchase price for these units would be set at the time of the execution of the right. Mr James Wright, president and CEO, will subscribe for 625,000 units under the same pricing and conditions as Rule.
The proceeds will be used to continue the drilling program at the Guabisay project in central Ecuador. Rio will commence immediately to finish the diamond drill hole at the Gigantones zone that was stopped at 103.5m in November. A mineralized intercept had been encountered from 69m to 103.5m and, as previously announced, had returned assay values (Bondar Clegg) of 3.12 grams gold per metric tonne, 35.8 grams silver per metric tonne and 0.49% copper. The mineralized intercept was encountered 20m prior to the projected intersection from surface geology and the hole is projected to continue in the N30E fracture zone for the next 70-80m before crossing into wall rock. 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 100m in width where it can be mapped at surface.
The first drill hole was directed, at an inclination of -50 degrees, to
penetrate the centre of a geochemical and rock anomaly zone that was mapped over an area of 100m by 200m at surface. A series of 53 rock chip and channel samples had been taken from outcrops and small adits within the Gigantones zone last year and the average assay values were 1.81 grams gold per metric tonne, 56.6 grams silver per metric tonne and 0.36% copper. The Gigantones zone was the site of small artisan mining activities in the mid-1980s. Following the completion of the first hole another three holes are scheduled to be drilled at Gigantones during the first phase drilling program.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Hope to see some movement on this stock now that financing is arranged. |
