/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Feb. 9, 2012 /CNW/ - Rio Novo Gold Inc. (TSX: RN) (TSX: RN.WT)
("Rio Novo" or the "Company") is pleased to announce that it has
entered into an agreement with Canaccord Genuity Corp. on behalf of a
syndicate of underwriters to be led by Canaccord Genuity Corp.
(collectively, the "Underwriters"), to purchase, on a bought deal
basis, 26,700,000 units of the Company at a price of C$0.75 per unit
for gross proceeds of C$20,025,000 (the "Offering").
Each unit will consist of one common share and one half of one common
share purchase warrant. Each full warrant will be exercisable for 2
years from the closing date at an exercise price of $1.00 per common
share purchase warrant.
The Company has granted the Underwriters an option (the "Over-Allotment
Option") to purchase up to an additional 4,005,000 units of the Company
at a price of C$0.75 per unit, exercisable in whole or in part at any
time and from time to time for a period of 30 days after the closing
date of the Offering. If the Over-Allotment Option is exercised in
full, an additional C$3,003,750 will be raised pursuant to the
Offering, for total aggregate gross proceeds of C$23,028,750.
The units of the Company will be offered to the public by way of a short
form prospectus to be filed in all provinces of Canada except Quebec
and Canadian territories as agreed to between the Company and the
Underwriters, and will be offered outside of Canada on a private
The net proceeds of this Offering will be used to advance the Company's
projects and for general working capital purposes.
The Offering is expected to close on or about February 29, 2012 and is
subject to certain conditions including, but not limited to, the
receipt of all necessary regulatory and stock exchange approvals,
including the approval of the TSX and applicable securities regulatory
This press release does not constitute an offer of securities for sale
in the United States. The securities being offered have not been, nor
will be, registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold within the United States absent
U.S. registration or an applicable exemption from U.S. registration
About Rio Novo
Rio Novo is focused on the acquisition, exploration and development of
gold properties in Brazil and Colombia. The Company has Measured &
Indicated resources of 961,711 oz and 1,178,016 Inferred oz of gold in
Brazil and Colombia.
The Company's goal is to become a producer of gold by bringing into
production its two Brazilian properties, the Almas Gold Project,
located in the State of Tocantins, and the Guarantã Gold Project,
located in the State of Mato Grosso. Both projects enjoy established
infrastructure and main grid hydropower in mining friendly
In June 2011, the Company completed the 100% acquisition of the
Toldafria property in Caldas State in the central Cordillera. The
Toldafria property has an Inferred resource of 952,000 oz gold at a
grade of 2.38 g/t as set out in a NI 43-101 compliant resource
estimate. At Toldafria, the Company executed a systematic program of
trenching, mapping, underground channel sampling, and plans to begin
drilling this March to determine the vertical and horizontal continuity
and the extent of the Toldafria deposit.
SOURCE Rio Novo Gold Inc.
For further information:
For further information on Rio Novo please contact:
Chief Executive Officer
+1 (416) 368-8288
General Manager, Corporate Development
+1 (416) 368-1573