NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES
VANCOUVER, BC: May 29 – Rhys Resources Ltd. (TSX.V: RYS.H) (the “Company”) announces that further to its news release of April 18, 2017 the Company has completed a private placement offering (the “Offering”) of units (the “Units”) for gross proceeds of $250,000.
Under the offering the Company sold an aggregate 5,000,000 Units at a price of $0.05 per Unit.
Each Unit consisted of one common share and one half of one transferable common share purchase warrant. Each whole warrant is exercisable at $0.10 for a period of one year. Net proceeds from the private placement will be used for general working capital purposes.
Aggregate cash finder’s fees of $9,300 were paid in the connection with the Offering.
One insider of the Company subscribed for a total of 100,000 Units, for aggregate subscription proceeds of $5,000, constituting a “related party transaction” as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101″). The Company is relying on the exemptions from the formal valuation and minority approval requirements under MI 61- 101. The Company is exempt from the formal valuation requirement and the minority shareholder approval requirement of MI 61-101 in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company’s market capitalization. A material change report was not filed 21 days prior to the closing of the Offering as insider participation had not been established at that time.
RHYS RESOURCES LTD.
Mark Vanry – CEO & President
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.