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Rio Cristal raises US$2.8 million through private placement in Peru

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Andina

Canadian exploration company Rio Cristal Resources Corporation announced Friday that it has raised US$2.8 million in a non-brokered private placement in Peru, where the company does its business.

Proceeds from the placement of almost 33 million units at 8.5 cents US per unit will be used to advance drilling and other exploration at the company’s Bongara zinc and Condor gold projects and for general corporate purposes.

"The raising of additional capital will allow us to resume drilling at our flagship Bongara zinc project and to initiate drilling at our Condor gold project," President and CEO Thomas Findley said in Friday’s announcement.

"We will also continue our technical review of the La Cumbre copper property. The past two years of world financial crisis have been very difficult for the company and we are very pleased to be able to get back to doing exploration drilling and advancing our projects."

Units in the placement consists of one common share and one-half non-transferable warrant that entitles the holder to purchase one additional share at an exercise price of 11.5 cents US per warrant share for a period of two years, and is subject to acceleration under certain conditions.

According to a Canadian Press article which appeared in the Canadian Business, Rio Cristal shares last traded Thursday at 9.5 cents on the TSX Venture market.

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