Rio Grande Mining Corp.
TSX VENTURE : RGV

February 21, 2012 08:00 ET

Rio Grande Mining Corp.: Acquisition of La Maria Property Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2012) - Rio Grande Mining Corp. (TSX VENTURE:RGV) ("Rio Grande" or the "Company") announces that it continues to move forward with its acquisition of all the issued and outstanding securities of Tru Vision Corp. ("Tru Vision"). Tru Vision holds, through its wholly-owned subsidiaries, an option to acquire a 100% interest in El Porvenir Minero S.A.S., a private Colombian company that owns the La Maria Gold Project, located in the Department of Antioquia, Colombia. See the Company's News Releases dated February 9, 2011, May 19, 2011, June 2, 2011, September 29, 2011 and November 16, 2011.

The Company has engaged Jordan Capital Markets Inc. ("Jordan Capital") to raise up to $2,000,000 on a commercially reasonable efforts basis, with the terms of such financing to be determined. The Company, in consultation with Jordan Capital, intends to set the price for the securities to be offered pursuant to this financing once the common shares of the Company resume trading and expects that the price will be based upon the median trading price of the common shares of the Company in the three trading days following resumption of trade. The Company expects that the proceeds of this financing will be used to help fund the acquisition of Tru Vision and exploration of Tru Vision's La Maria Gold Property and for general working capital purposes.

On behalf of the Board of Directors,

Jerry Minni, President & CEO

Rio Grande Mining Corp.

Statements in this press release regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations and include statements that: (i) trading in the common shares of the Company may resume, (ii) the Company may close the financing to raise up to $2,000,000; (iii) Jordan Capital Markets Inc. will raise up to $2,000,000 for the Company on a commercially reasonable efforts basis; and (iv) the proceeds of the financing will be used to fund the acquisition of Tru Vision and the exploration of the La Maria Gold Property and for general working capital purposes. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties such as the risk that the common shares of the Company may not resume trading in the future or at all, and the risk that the financing may not occur for any reason. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) the inability of the parties to complete the financing, as proposed or at all; (ii) fluctuation of mineral prices; (iii) a change in market conditions; (iv) the refusal of the TSX Venture Exchange to approve a resumption in trading of the common shares of the Company; and (v) the refusal of the TSX Venture Exchange to accept the proposed transaction for any reason whatsoever. Except as required by law, the Company does not intend to update any changes to such statements.

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 Grande Mining Corp.
    Jerry Minni
    President & CEO
    (604) 683-8610
    (604) 683-8605 (FAX)