Rio Silver Inc. announced a non-brokered private placement of convertible notes for gross proceeds of up to CAD 200,000 on November 1, 2022. The transaction may include participation from one or more insiders of the company. Each note will be convertible at the option of the holder into one common share of the Company at a conversion price of CAD 0.05 per share during the first year of the notes and CAD 0.10 during the second year of the notes.

The Notes will mature in two years from the date of issuance and bear interest at the rate of 18% per annum, payable quarterly, until the Notes are converted or repaid. The Company will be entitled to repay, without any penalty, any portion of the principal amount of the Notes, together with accrued and unpaid interest, at any time commencing four months after the date of issuance. The Notes will be unsecured and transferable, subject to resale restrictions under applicable securities laws and TSX Venture Exchange requirements.

All the securities issued in the transaction will be subject to a four-month statutory hold period. The transaction is subjected to the approval of TSX Venture Exchange.