Rhino Closes First-Tranche of Non-Brokered Private Placement
RHINO EXPLORATION INC.
SUITE 200 – 551 HOWE STREET VANCOUVER, BRITISH COLUMBIA, V6C 2C2 Telephone: (604) 683-8610 Facsimile: (604) 683-8605
Trading Symbol: RHI
NEWS RELEASE
RHINO CLOSES FIRST-TRANCHE OF NON-BROKERED PRIVATE PLACEMENT
Vancouver, B.C. February 25, 2013- Rhino Exploration Inc. (the “Company”) (TSX-V: “RHI”) announces it has closed a first-tranche of its non-brokered private placement financing previously announced on January 15, 2013 and January 24, 2013, including both the flow-through and hard-dollar portion of the financing for gross proceeds of $431,499.60.
The first-tranche of the non-brokered private placement (the “First Tranche”) consisted of the issuance of 1,723,331 flow-through units (the “FT Units”) at a price of $0.15 per FT Unit and 1,730,000 nonflow-through units (the “NFT Units”) at a price of $0.10 per NFT Unit. Each FT Unit consists of one flow-through common share and one-half of one non flow-through share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.25 per common share for a period of 24 months following the date of issuance. Each NFT Unit consists of one non flow-through common share and one Warrant. Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.15 per common share for a period of 24 months following the date of issuance.
The Company paid a finder’s fee to EMD Financial Inc. (the “Finder”) of $50,950 cash and issued the Finder non-transferable warrants exercisable to acquire 173,000 common shares of the Company at a price of $0.25 per common share for a period of 24 months for the date of issuance and non-transferable warrants exercisable to acquire 250,000 common shares of the Company at a price of $0.15 per common share for a period of 24 months from the date of issuance.
All securities issued above are subject to a hold period expiring on June 21, 2013, being four months and one day after closing of the First Tranche. The proceeds from the FT Units of the First Tranche will be used for work on the Company’s mineral properties and the proceeds from the NFT Units of the First Tranche will be used for the Company’s mineral properties and for general working capital.
The Company also announces that all resolutions tabled at its annual general and special meeting held on Friday, February 22, 2013 were approved by its shareholders.
The Company’s newly elected board of directors and management team consist of Michel David (President, Chief Executive Officer and Director), Jerry Minni, CA (Chief Financial Officer and Director), Eugene Gauthier, PEng, (Director) and Quinn Field-Dyte (Director).
The Company would also like to thank former President and Director Jeffrey Cocks for his past efforts on behalf of the Company.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
ON BEHALF OF THE BOARD OF DIRECTORS
“Michel David”
____________________________________ Michel David, President, Chief Executive Officer and Director
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.