- Rhyolite Resources (RYE) is hoping to raise up to C$4.5 million in its latest non-brokered private placement
- The company plans to sell up to 15 million of its common shares at a price of 30 cents per share
- Rhyolite Resources will use the proceeds for its Paxson Project, its recently acquired Brothers Project and for financing potential acquisitions
- In the days following the Brothers Project acquisition, the company’s share price rose 20 per cent but began falling today
- Rhyolite Resources (RYE) is down 8.33 per cent and is currently trading for 55 cents per share
Rhyolite Resources (RYE) is hoping to raise up to C$4.5 million in its latest non-brokered private placement.
Through the placement, the company plans to sell up to 15 million of its common shares, at a price of 30 cents per share. All securities which are issued through the private placement will be subject to a statutory hold period of four months and one day.
The closing of the private placement will also be subject to the receipt of all applicable regulatory approvals.
Rhyolite Resources may have to pay eligible finders a cash commission, equal to six per cent of the placement’s total gross proceeds. If the company’s placement is fully subscribed, this will result in a cash commission of approximately $270,000 for the finders.
Rhyolite Resources will primarily use the proceeds of the placement for its Paxson Gold Project in Alaska and its recently acquired Brothers Project in Suriname. Some of the funds may also go towards financing potential strategic acquisitions and the company’s general working capital purposes.
The company announced that it had acquired the option to buy interest in the Brothers Project last week, on October 30. As a result, Rhyolite Resources’ share price rose at least 11.11 per cent that day.
In the five days that have followed the option acquisition, the company’s share price has continued to rise by as much as 20 per cent. However, in conjunction with the company’s private placement announcement, Rhyolite’s share price has begun to fall today.
Rhyolite Resources (RYE) is down 8.33 per cent and is trading for 55 cents per share, as of 10:27am EST.