$750,000 private placement; directors appointed
Rio Amarillo Mining Ltd RIO
Shares issued 14,488,125 Nov 5 close $0.08
Fri 6 Nov 98 News Release
Mr. James Wright reports
The company has signed an engagement letter with IBK Capital of Toronto,
Ontario to raise up to $750,000 through a private placement of common
shares or through some other acceptable financing arrangement on a best
efforts basis. The private placement will be made pursuant to prospectus
exemptions at a price to be announced later. The transaction is anticipated
to close on or before May 9, 1999. Under the terms of the engagement
letter, Rio has agreed to pay IBK Capital a non-refundable fee of $25,000
($12,500 on Nov. 9, 1998 and the balance by Dec. 4, 1998). On closing, a
transaction fee equal to 9 per cent of the total amount of the financing,
less the $25,000, is payable. The proceeds will be used to finance Rio's
position in the Mufurudzi joint venture with Mandorin Goldfields
(Stockwatch on Oct. 14, 1998). Under the terms of the joint venture, Rio
will spend $750,000 over two years to earn a 50 per cent interest in the
EPO 1073 concession in Zimbabwe. The EPO 1073 concession has a history of
small gold production during the 1914-1945 period as well as exploration
targets for volcanic massive sulphides.
Malcolm L. Stevens, managing director of CanAustra Investments, has been
elected to Rio's board of directors in the capacity of chairman of the
board. Mr. Stevens, a chartered accountant, brings to the company over 20
years of investment banking experience specializing in the management and
financing of companies in the resource industries and, in particular, the
mining industry. Mr. Stevens has recently been associated with the purchase
of a major lateritic nickel/cobalt project in New Caledonia as well as a
major industrial minerals project in Argentina. Mr. Stevens is also
vice-chairman and president of Mandorin Goldfields.
Christine Reynolds has been elected to the board of directors and will
serve as corporate secretary. Ms. Reynolds operates her own company, Durham
Capital, which specializes in corporate and investor relations for junior
resource companies. She also serves as corporate secretary of Mandorin
Goldfields and handles its investor relations.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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