Rio Verde Minerals Announces Non-Brokered Private Placement of Up to C$15 Million
TORONTO, ONTARIO--(Marketwire - May 25, 2012) - Rio Verde Minerals Development Corp. (TSX:RVD) ("Rio Verde" or the "Company") is pleased to announce a non-brokered private placement of up to 35,714,285 shares at a price of C$0.42 per share, for aggregate gross proceeds of up to C$15 million, of which C$11 million has been committed. The offering price represents an 87% premium to yesterday's closing price.
The Company plans to use the proceeds from the financing to fund exploration and pre-feasibility studies at its Sergipe Potash Project, to continue exploration of its portfolio of phosphate prospects, for development of the Fosfatar Phosphate Project, and for working capital purposes. Stephen Keith, CEO of Rio Verde, commented, "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. 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."
Closing of the transaction is subject to the receipt of all required regulatory approvals, including the conditional approval of the Toronto Stock Exchange. Closing is expected to occur on or about June 15, 2012 following the satisfaction of all closing conditions.
About Rio Verde
Rio Verde Minerals Development Corp. (TSX:RVD) is a publicly traded company focused on the exploration and development of fertilizer projects in Brazil. The Company's goal is to become the leading Brazilian fertilizer mining and development company by selecting prime assets that are near infrastructure, with known mineralization, in regions without significant social or environmental issues. The Company plans to fast-track the best projects to development to create stakeholder value.
Rio Verde holds one potash project and a portfolio of phosphate projects in Brazil. Potash and phosphate fertilizers have favourable supply and demand dynamics, and Rio Verde has a significant cost advantage by being based in Brazil, a country that imports about 90% of its potash and 50% of its phosphate needs. Rio Verde's near-term primary objective is to focus its potash exploration on establishing a Canadian National Instrument 43-101 resource. |
