Rise Gold Closes Amended Debt Agreement

Rhea-AI Summary

Rise Gold Corp. (CSE: RISE) (OTCQX: RYES) has finalized an amended debt agreement with Eridanus Capital Key points include:

1. Issuance of 1,700,000 share purchase warrants, with 340,000 directed to Daniel Oliver, Jr., a member of Eridanus and a company director.
2. Loan maturity extended by one year to September 4, 2025.
3. Interest rate reduced to 15% for 12 months starting September 4, 2024.
4. Warrants allow holders to acquire one share at US$0.115 for four years from issuance.
5. The transaction is exempt from certain regulatory requirements due to its size relative to Rise Gold's market capitalization.

The securities are subject to statutory hold periods and have not been registered under the U.S. Securities Act.

Positive

• Loan maturity extended by one year, providing more time for repayment
• Interest rate reduced to 15% for 12 months, potentially lowering debt servicing costs
• Issuance of warrants at US$0.115 per share, potentially bringing in additional capital if exercised

Negative

• Dilution of existing shareholders due to issuance of 1,700,000 new warrants
• Related party transaction with company director, raising potential conflict of interest concerns

Grass Valley, California--(Newsfile Corp. - September 10, 2024) - Rise Gold Corp. (CSE: RISE) (OTCQX: RYES) (the "Company") announces that it has finalized the amended debt agreement with Eridanus Capital LLC ("Eridanus") as previously announced in its August 30, 2024 news release. The Company has agreed to issue 1,700,000 share purchase warrants ("Warrants") to Eridanus, 340,000 of which Eridanus has directed be issued to Daniel Oliver, Jr., a member of Eridanus, and a director of the Company. The maturity date of the loan has been extended by one year to September 4, 2025, and the interest rate has been reduced to 15% for a period of 12 months commencing September 4, 2024. Each Warrant entitles the holder to acquire one share at an exercise price of US$0.115 for a period of four years from the date of issuance. The Warrants and any shares acquired upon exercise of the Warrants will be subject to statutory hold periods in accordance with applicable United States and Canadian securities laws.

To the extent that the participation of Mr. Oliver in the transaction may constitute a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Company is relying on exemptions from the formal valuation requirements of section 5.4 of MI 61-101 and minority shareholder approval requirements of section 5.6 of MI 61-101. As the fair market value of the related party's participation is not more than 25% of Rise Gold's market capitalization, the related party transaction is exempt from the formal valuation requirements pursuant to subsection 5.5(a) of MI 61-101 and from the minority approval requirements pursuant to subsection 5.7(1)(a) of MI 61-101.

The securities offered have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold absent registration or compliance with an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About Rise Gold Corp.

Rise Gold is an exploration-stage mining company incorporated in Nevada, USA. The Company's principal asset is the historic past-producing Idaho-Maryland Gold Mine located in Nevada County, California, USA.

On behalf of the Board of Directors:

Joseph Mullin
President and CEO
Rise Gold Corp.

For further information, please contact:

RISE GOLD CORP.
345 Crown Point Circle, Suite 600
Grass Valley, California, USA 95945
T: 530.433.0188
info@risegoldcorp.com
www.risegoldcorp.com

The CSE has not reviewed, approved or disapproved the contents of this news release.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks, uncertainties and assumptions related to certain factors including, without limitation, obtaining all necessary approvals, meeting expenditure and financing requirements, compliance with environmental regulations, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. Rise undertakes no obligation to update forward-looking statements or information except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222971

FAQ

What are the key terms of Rise Gold Corp's (RYES) amended debt agreement with Eridanus Capital?

The key terms include extending the loan maturity by one year to September 4, 2025, reducing the interest rate to 15% for 12 months starting September 4, 2024, and issuing 1,700,000 share purchase warrants exercisable at US$0.115 for four years.

How many warrants did Rise Gold Corp (RYES) issue in the amended debt agreement?

Rise Gold Corp issued 1,700,000 share purchase warrants as part of the amended debt agreement with Eridanus Capital

What is the exercise price and duration of the warrants issued by Rise Gold Corp (RYES)?

The warrants issued by Rise Gold Corp have an exercise price of US$0.115 and are valid for a period of four years from the date of issuance.

Is there a related party transaction involved in Rise Gold Corp's (RYES) amended debt agreement?

Yes, 340,000 warrants were directed to be issued to Daniel Oliver, Jr., a member of Eridanus Capital and a director of Rise Gold Corp, which may constitute a related party transaction.