|October 30, 2020|
Rhyolite Resources closes acquisition of the Brothers Project in Suriname
VANCOUVER, BC, OCTOBER 30, 2020 - Rhyolite Resources Ltd. (the "Company" or "Rhyolite") (RYE-TSXV) is pleased to announce that it has completed the acquisition of all of the outstanding share capital of 2777662 Ontario Inc. ("ONCorp"), pursuant to the terms of a definitive share purchase agreement entered into with each of the shareholders (collectively, the "Vendors") of ONCorp. ONCorp is a privately-held arms-length company which holds an option to acquire an 80% interest in the Brothers Project in Suriname.
The Vendors received 15,546,566 common shares of Rhyolite in consideration for all of the outstanding share capital of ONCorp (the "Transaction").
"The opportunity to earn up to an 80% interest in the Brothers Project is an important step forward in the transformation of Rhyolite, positioning the company for future growth," said Richard Graham, President and Chief Executive Officer of Rhyolite.
"We believe that there is excellent potential to discover significant additional gold mineralization at Brothers, and are planning a comprehensive exploration program to follow up on these targets at the center of an established gold belt. Rhyolite continues to advance our Paxson gold project in Alaska and pursue other strategic acquisitions to add to our growing portfolio."
Highlights of the Brothers Project:
More information on the Brothers Project is available in Rhyolite's October 13, 2020 news release available at rhyoliteresources.com.
Highlights of the Transaction
Rhyolite has assumed ONCorp's right to earn up to an 80% interest in the Brothers Project, which right is exercisable by completing the following:
Dr. Dennis LaPoint, PhD, LGeo, is a Qualified Person (QP) under National Instrument 43-101 "Standards of Disclosure for Mineral Projects" and has approved the technical information contained in this news release. Dr. LaPoint is not considered to be independent for the purposes of National Instrument 43-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Richard Graham, P.Geo.
About Rhyolite Resources Ltd.
Rhyolite Resources Ltd. is a Canadian-based, opportunity focused, resource company. Utilizing its technical strength and entrepreneurial drive, Rhyolite's corporate strategy is to enhance shareholder value through the acquisition of discovery to production staged projects.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including, without limitation, statements with respect to exploration, resource potential, production development and permits. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Rhyolite Resources Ltd., or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information including the Company obtaining the approval of the Offering from the TSX Venture Exchange. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might", or "will" be taken, occur, or be achieved.
These statements reflect the Company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if the Company's expectations regarding future events, performance, or results change.
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