Rio Cristal Resources Corporation

Rio Cristal Resources Corporation

August 31, 2010 10:26 ET

Rio Cristal Resources Completes US$3,284,098 Financing

VANCOUVER, BRITISH COLUMBIA and LIMA, PERU--(Marketwire - Aug. 31, 2010) - Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVLAC:RCZ) ("RCR" or the "Company") is pleased to announce that it has completed a non-brokered private placement of 38,636,450 units (the "Units") of the Company at the price of US$0.085 per Unit, each Unit consisting of one common share (a "Share") and one-half warrant (each whole such warrant, a "Warrant") for total proceeds of US$3,284,098. The Company intends to use the proceeds from the placement to advance drilling and other exploration at the Company's Bongara zinc and Condor gold projects, and for general corporate purposes including the evaluation of the La Cumbre copper project.

Thomas Findley, President and CEO, said, "The interest we received in our private placement was excellent, especially considering the current difficult financial market conditions for early stage exploration companies. The capital that we have raised will allow us to resume drilling at our flagship Bongara zinc project and to initiate drilling at our Condor gold project. We will also continue our technical review of the La Cumbre copper property. Approximately 85% of the placement was in Lima with the balance coming from Toronto and London."

Each Warrant shall entitle the holder thereof to purchase one additional Share (a "Warrant Share") at an exercise price of US$0.115 per Warrant Share for a period of two years, and is subject to acceleration. Commencing on the date that is four months and one day after the closing of the private placement, if the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange (the "Exchange") is at a price greater than US$0.20 for a period of ten (10) consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving written notice to the holders of the Warrants which will then expire on the date that is not less than thirty (30) days from the date of the notice.

The securities are subject to a hold period and may not be traded until December 31, 2010, except as permitted by Canadian securities legislation and the TSX Venture Exchange.

The Company will pay a US$200,222 finder's fee in connection with the private placement.

Certain directors and officers of the Company acquired securities under the private placement, and as a result securityholdings of insiders in the Company have increased. However, the transaction is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization.

About Rio Cristal Resources Corporation

Rio Cristal Resources is a Canadian corporation focused on the discovery and further development of gold, copper and zinc deposits in Peru. The Company's most advanced exploration project is the Bongara zinc claim block located in northern Peru. Outstanding initial drilling results confirm that the project is within an important emerging Mississippi Valley-type zinc district.

The Company is also exploring its Condor gold project near Nazca, Peru where recent assays of bulk surface samples have been encouraging. Drilling is expected to begin in late September pending receipt of necessary permits. In addition, the Company is evaluating the acquisition of a copper oxide property with significant potential for low-cost, leachable copper resources.

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding intended use of proceeds, potential exploration results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future results, events and objectives could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Rio Cristal's expectations include exploration and other risks detailed from time to time in the filings made by the Company with securities regulators.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rio Cristal Resources Corporation
    Lucia Ferrero
    (778) 588-6880 or Toll Free: (866) 609-9644
    Rio Cristal Resources Corporation
    Thomas Findley
    (778) 588-6880 or Toll Free: (866) 609-9644
    (604) 609-9946 (FAX)