Rio Silver Announces Proposed Shares for Debt Transaction

Core Viewpoint - Rio Silver Inc. plans to settle $293,250 of debt through the issuance of common shares and warrants, subject to TSX Venture Exchange approval [1][2]. Group 1: Debt Settlement Details - The company intends to issue a total of 1,396,428 common shares at a deemed price of $0.21 per share and 420,238 common share purchase warrants [1]. - Of the common shares issued, 976,190 will be allocated to non-arm's length creditors, with no warrants issued to them [1]. - Each warrant is exercisable into a common share at a price of $0.28 per share for a period of three years from the date of issue [2]. Group 2: Regulatory and Financial Implications - The transaction is subject to a hold period of four months and one day from the date of issuance [2]. - Completion of the transaction will help the company improve its current working capital deficiency position [2].