Rio Alto Mining Limited: Private Placement of Common Shares
November 23 2010 - 9:26AM
Marketwired
Rio Alto Mining Limited ("Rio Alto") (TSX VENTURE: RIO)(OTCQX:
RIOAF)(BVLAC: RIO)(DBFrankfurt: MS2)(A0MSLE) is pleased to announce
that it is undertaking a private placement of its common shares
(the "Shares"). Kallpa Securities S.A.B. ("Kallpa") will act as the
agent to offer the Shares on a commercially reasonable best efforts
basis to qualified South American investors. Shares may also be
offered to qualified investors outside of South America on a
non-brokered basis.
The private placement will be completed for maximum proceeds of
C$20 million and minimum proceeds of C$10 million based on an issue
price of C$1.68 (US$1.65) per Share. The issue price was determined
by Rio Alto and Kallpa in the context of the market. Completion of
the private placement is subject to customary conditions including,
but not limited to, the approval of the TSX Venture Exchange.
Closing is expected to occur on or before November 30, 2010.
Of the net proceeds of the private placement, $10 million will
be used by Rio Alto to develop La Arena Gold Oxide Project in Peru
and for related working capital requirements with the balance to be
used by Rio Alto to partially exercise its option under the Option
and Earn-in Purchase Agreement dated June 15, 2009 to acquire
shares of La Arena S.A., the owner of La Arena Project, and to
conduct exploration activities on other areas of La Arena
Project.
To learn more about Rio Alto Mining Limited, please visit:
www.rioaltomining.com or Rio Alto's SEDAR profile at
www.sedar.com.
ON BEHALF OF THE BOARD OF RIO ALTO MINING LIMITED
Anthony Hawkshaw, Director and Chief Financial Officer
Forward Looking Statements
Certain statements contained herein constitute forward-looking
statements, including the expected amount of and use of proceeds
and timing of the closing of a private placement of the Shares and
for the development of the La Arena Gold Oxide Project. Rio Alto
believes the expectations reflected in these forward looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements in this press release should not be unduly relied upon.
Closing of the private placement could be delayed if Rio Alto
cannot obtain necessary regulatory approvals within anticipated
timelines and will not be completed unless certain conditions
customary for transactions of this sort are satisfied. Forward
looking statements included in this press release are made as of
the date of this press release and Rio Alto disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable securities
legislation.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts the responsibility for the adequacy or
accuracy of this release.
Contacts: Rio Alto Mining Limited Anthony Hawkshaw CFO &
Director +1 604 628 1401 or +511 625 9900 tonyh@rioaltomining.com
Rio Alto Mining Limited Alejandra Gomez Investor Relations
604.628.1401 866.393.4493 (FAX) alejandrag@rioaltomining.com
www.rioaltomining.com
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