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Rio Alto Mining Limited ("Rio
Alto") (TSX VENTURE:RIO - News;
OTCQX:RIOAF)(BVLAC:RIO)(DBFrankfurt:MS2) is pleased to announce that has
closed the first tranche of its previously announced private placement of
common shares for gross proceeds of C$12,812,646 (US$12,583,849). At this
closing a total of 7,626,575 common shares were sold at the issue price of
C$1.68 (US$1.65) per share. Kallpa Securities
S.A.B. ("Kallpa") of Lima, Peru acts as
Rio Alto's agent for the South American portion of private placement. One or
more additional tranches of the private placement are anticipated to be
completed this week for aggregate gross proceeds of up to C$20 million.
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.
The common shares issued at this closing
of the private placement are subject to a statutory resale restriction period
of four months and a day expiring on March 31, 2011. The completion of the
private placement is subject to final approval from the TSX Venture Exchange.
In connection with the first tranche of
the private placement, Rio Alto will pay Kallpa a
cash fee of US$739,000 and also pay finders' fees of C$145,000.
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.
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