What changed in this filing

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Item 1. Business

2020-10-29 compared with 2019-10-29 · 93 added, 134 removed, 7 unchanged (97% of the section changed)

Corporate Information

Company was incorporated on February 9, 2007 as Atlantic Resources Inc.

in the state of Nevada pursuant to the Nevada Revised

DESCRIPTION OF BUSINESS

General Corporate Information

Our Company was incorporated on February 9, 2007 as Atlantic Resources Inc.

in the state of Nevada pursuant to the Nevada Revised Statutes.

On April 11, 2012, we changed our name to Patriot Minefinders Inc.

On January 14, 2015, we changed our name

to Rise Resources Inc.

On January 14, 2015, we changed our name to Rise Resources Inc.

On March 29, 2017, we changed our name to Rise Gold Corp.

January 14, 2015, we completed a merger with our wholly owned subsidiary, Rise Resources Inc., and formally assumed the subsidiarys

name by filing Articles of Merger with the Nevada Secretary of State.

The subsidiary was incorporated entirely for the purpose

of effecting the name change and the merger did not affect our Articles of Incorporation or corporate structure in any other way.

January 22, 2015, we completed a 1 for 80 reverse split of our common stock and effected a corresponding decrease in our

authorized capital by filing a Certificate of Change with the Nevada Secretary of State (the Reverse Split).

a result of the Reverse Split, our authorized capital decreased from 1,680,000,000 shares to 21,000,000 and our issued and outstanding

common stock decreased from 63,400,000 shares to 792,518, with each fractional share being rounded up to the nearest whole share.

the name change and Reverse Split became effective in the market at the open of business on February 9, 2015.

April 9, 2015, we increased our authorized capital from 21,000,000 to 400,000,000 shares of common stock.

March 29, 2017, we completed another merger with our wholly owned subsidiary, Rise Gold Corp., and formally assumed the subsidiarys

name by filing Articles of Merger with the Nevada Secretary of State.

The subsidiary was incorporated entirely for the purpose

of effecting the name change and the merger did not affect our Articles of Incorporation or corporate structure in any other way.

currently have one wholly owned subsidiary, Rise Grass Valley, Inc., which holds certain of our interests and assets located in

the United States, and in particular, our interest in the I-M Mine Property.

On January 14, 2015, we completed a merger with our wholly owned subsidiary, Rise Resources Inc., and formally assumed the subsidiary’s name by filing Articles of Merger with the Nevada Secretary of State.

The subsidiary was incorporated entirely for the purpose of effecting the name change and the merger did not affect our Articles of Incorporation or corporate structure in any other way.

On January 22, 2015, we completed a 1 for 80 reverse split of our common stock and effected a corresponding decrease in our authorized capital by filing a Certificate of Change with the Nevada Secretary of State (the “Reverse Split”).

As a result of the Reverse Split, our authorized capital decreased from 1,680,000,000 shares to 21,000,000 and our issued and outstanding common stock decreased from 63,400,000 shares to 792,518, with each fractional share being rounded up to the nearest whole share.

Both the name change and Reverse Split became effective in the market at the open of business on February 9, 2015.

On April 9, 2015, we increased our authorized capital from 21,000,000 to 400,000,000 shares of common stock.

On December 16, 2019, as a result of a 1 to 10 reverse split, authorized capital was reduced to 40,000,000.

On September 18, 2020, the shareholders approved an increase to authorize capital to 400,000,000 shares.

On March 29, 2017, we completed another merger with our wholly owned subsidiary, Rise Gold Corp., and formally assumed the subsidiary’s name by filing Articles of Merger with the Nevada Secretary of State.

The subsidiary was incorporated entirely for the purpose of effecting the name change and the merger did not affect our Articles of Incorporation or corporate structure in any other way.

We currently have one wholly owned subsidiary, Rise Grass Valley, Inc., which holds certain of our interests and assets located in the United States, and in particular, our interest in the Idaho-Maryland Gold Mine property near Grass Valley, California (the “I-M Mine Property”).

Rise Grass Valley, Inc.

was incorporated in the state

of Nevada pursuant to the Nevada Revised Statutes.

common stock is currently listed in Canada on the Canadian Securities Exchange (the CSE) under the symbol RISE.

was incorporated in the state of Nevada pursuant to the Nevada Revised Statutes.

Our common stock is currently listed in Canada on the Canadian Securities Exchange (the “CSE”) under the symbol “RISE”.

We are a reporting issuer in British Columbia, Alberta, and Ontario in Canada.

Our common stock is also currently traded in the

United States on the OTCQB Market under the symbol RYES.

We are an SEC reporting company by virtue of our class

of common stock being registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the Exchange Act).

are a mineral exploration company and our primary asset is a major past producing high grade property near Grass Valley, California,

United States, which we own outright.

In the past, we have held several other potential mineral properties in British Columbia,

Canada, which have been written off based on the strength of the I-M Mine Project.

in our Companys business during the July 31, 2019 fiscal year covered by this report include the following:

August 30, 2018, the Company completed a first tranche of a non-brokered private placement, issuing an aggregate of 2,881,250

units at a price of $0.08 per unit for gross proceeds of $230,500.

Each unit consists of one share of common stock and one share

purchase warrant exercisable into one share of common stock at a price of $0.12 for a period of three years from the date of issuance

until August 30, 2021.

September 17, 2018, the Company completed a second tranche of a non-brokered private placement, issuing an aggregate of 2,003,125

units at a price of $0.08 per unit for gross proceeds of $160,250.

Each unit consists of one share of common stock and one share

purchase warrant exercisable into one share of common stock at a price of $0.12 for a period of three years from the date of issuance

until September 17, 2021.

October 16, 2018, the Company completed a strategic initial investment in a financing of $1,750,000 by issuing 17,500,000 units

to Meridian Jerritt Canyon Corp.

(Meridian), a wholly-owned subsidiary of Yamana Gold Inc.

Each unit consists of one share of common stock at a price of $0.10 per unit and one-half of one share purchase warrant at a price

of $0.13 exercisable until October 16, 2020.

As a result of the investment, the investor owned approximately 12.6% of the Companys

issued and outstanding shares on a non-diluted basis.

In conjunction with the investment, the Company issued 875,000 share purchase

warrants valued at $48,686 (discount rate –

1.65%, volatility –

139.09%, expected life –

2 years, dividend yield

0%) as a finders fee to Southern Arc Minerals Inc.

(Southern Arc), which will be exercisable into

one share of common stock at a price of $0.13 until October 16, 2020.

November 5, 2018, the Company raised $750,000 through the sale of 7,500,000 units at $0.10 per unit where each unit consists of

one share of common stock and one half of one share purchase warrant exercisable into one share of common stock at a price of

$0.13 until November 5, 2020.

All 7,500,000 units issued in the final tranche were acquired by Southern Arc.

February 14, 2019, the Company entered into convertible debenture whereby it received $1,000,000 of principal amount (the Debenture)

from Meridian, a wholly-owned subsidiary of Yamana.

The Debenture has a term of six months and an annual interest rate of 12%,

calculated and compounded monthly, payable in cash or units of the Company at Yamanas option except as described below.

The principal amount of the Debenture and any accrued interest thereon is convertible into units at a conversion price of C$0.10

per unit (the Conversion Price) at any time at the sole discretion of Meridian.

In addition, the principal amount

of the Debenture will automatically be converted into units at the Conversion Price if, during the term of the Debenture, Rise

Gold is able to raise proceeds of C$800,000 under the Private Placement from investors other than Yamana in connection with the

March 2019 private placement.

March 1, 2019, the Company completed a non-brokered private placement for a total of $1,827,472 through the sale of 18,274,724

units at a price of $0.10 per unit where each unit consists of one share of common stock and one-half of one share purchase warrant.

Each whole warrant is exercisable into one share of common stock at a price of $0.13 until March 1, 2021.

Out of the 18,274,724

units issued as part of this private placement, 10,049,724 units were issued to Meridian, a wholly owned subsidiary of Yamana

to settle convertible debt balance of $1,004,972.

In connection with the private placement, the Company paid finders fees

and share issuance costs of $107,299, and issued a total of 199,500 finders warrants valued at $11,100 (discount rate –

1.65%, volatility –

139.09%, expected life –

2 years, dividend yield –

0%), exercisable into one share of common

stock at a price of $0.13 for a period of two years from the date of issuance.

July 3, 2019, the Company completed the first tranche of a non-brokered private placement where it raised a total of $725,769

through the sale of 10,368,131 units at a price of $0.07 per unit where each unit consists of one share of common stock and one-half

of one share purchase warrant.

Each whole warrant is exercisable into one share of common stock at a price of $0.10 until July

Ben Mossman, a director and CEO of the Company, acquired 714,286 units, which constitutes as a related party transaction.

August 19, 2019, the Company completed the second tranche of a non-brokered private placement for a total of $3,207,850 through

the sale of 45,826,435 units at a price of $0.07 per unit where each unit consists of one share of common stock and one-half of

one share purchase warrant.

Each whole warrant is exercisable into one share of common stock at a price of $0.10 until August

The Company has paid finders fee of $7,837 and issued a total of 111,960 finders warrants entitling the holder

to acquire one share of common stock at a price of $0.10 until August 19, 2022.

September 9, 2019, the Company completed a debt financing with Eridanus Capital LLC (the Lender) for a US$1,000,000

loan (the Loan).

The Loan has a term of 4 years and an annual interest rate of 10% for the first two years increasing

to 20% in year 3 and to 25% in year 4.

Our common stock is also currently traded in the United States on the OTCQX Market under the symbol “RYES”.

We are an SEC reporting company by virtue of our class of common stock being registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Description of Business

We are a mineral exploration company and our primary asset is a major past producing high-grade I-M Mine Property near Grass Valley, California, United States, which we own outright.

In the past, we have held several other potential mineral properties in British Columbia, Canada, which have been written off based on the strength of the I-M Mine Project.

Business Development

Developments in our Company’s business during the July 31, 2020 fiscal year covered by this report include the following:

On July 3, 2019, the Company completed the first tranche of a non-brokered private placement.

The Company raised a total of $552,000 (C$725,769) through the sale of 1,036,813 units at a price of $0.50 (C$0.70) per unit where each unit consists of one share of common stock and one-half of one share purchase warrant.

Each whole warrant entitles the holder to acquire one additional share at an exercise price of $0.80 (C$1.00) until July 3, 2022.

On August 19, 2019, the Company completed the second tranche of a non-brokered private placement for a total of $2,412,281 (C$3,207,850) through the sale of 4,582,644 units at a price of $0.53 (C$0.70) per unit where each unit consists of one share of common stock and one-half of one share purchase warrant.

Each whole warrant is exercisable into one share of common stock at a price of $0.80 (C$1.00) until August 19, 2022.

The Company has paid finders’ fees and associated legal fees of $8,710 and issued a total of 11,196 finder’s warrants with a value of $4,990 entitling the holder to acquire one share at a price of $0.80 (C$1.00) until August 19, 2022.

The following weighted average assumptions were used for the Black-Scholes pricing model valuation of these warrants:

Risk-free interest rate – 1.52%;

expected volatility – 123.27%;

share price of C$0.85 and strike price – C$1.00;

expected life of warrants – 3 years.

On September 3, 2019, the Company completed a debt financing with Eridanus Capital LLC (the “Lender”) for $1,000,000 (the “Loan”).

The Loan has a term of 4 years and an annual interest rate of 10% for the first two years increasing to 20% in year 3 and to 25% in year 4.

Interest will accrue and be paid along with the principal upon the maturity date.

received 11,500,000 bonus share purchase warrants as additional consideration for advancing the Loan.

Each warrant entitles the

holder to acquire one share of common stock at an exercise price of $0.10 for a period of three years from the date of issuance.

The Lender received 1,150,000 bonus share purchase warrants as additional consideration for advancing the Loan.

The fair value of these warrants was calculated to be

$444,942 which was netted against the loan payable balance along with $15,000 paid to the lender for a total of $459,942 in other issuance costs.

Each warrant entitles the holder to acquire one share of common stock at an exercise price of $0.80 (C$1.00) for a period of three years from the date of issuance.

The Loan may be repaid prior to the maturity date, in whole or in part, provided that all accrued interest is paid.

if total interest payments are less than $200,000, the difference will be paid to the Lender as prepayment compensation.

is secured against the assets of the

and its subsidiary and will be used for permitting, engineering and working capital at the Companys Idaho Maryland Gold

of Operations

at July 31, 2019, we had a cash balance of $281,575, compared to a cash balance of $69,616 as of July 31, 2018.

plan of operations for the next 12 months is to prepare and apply for a Use Permit from Nevada County California, to re-open the

Idaho-Maryland gold mine at the I-M Mine Property.

Company has commenced engineering work to support an application for a Use Permit from Nevada County to allow the following activities:

of the underground mine workings.

exploration drilling.

commercial mining with onsite mineral processing at the historic throughput of 1,000 tons per day.

has completed an exploration drilling program on the I-M Mine Property in June of 2019.

Up to July 31, 2019, Rise has completed

seventeen drill holes totaling approximately 20,584 meters.

currently have two full-time employees, which includes our Chief Executive Officer.

Our other officers and directors provide services

to us on an as-needed basis, and we plan to rely on their efforts, as well as those of a number of independent consultants, to

manage our operations for the foreseeable future.

plan to engage in mineral exploration and development activities and will accordingly be exposed to environmental risks associated

with mineral exploration activity.

In addition, if total interest payments are less than $200,000, the difference will be paid to the Lender as prepayment compensation.

The Loan is secured against the assets of the Company and its subsidiary and will be used for permitting, engineering and working capital at the Company’s Idaho Maryland Gold Project.

On November 21, 2019, the Company submitted an application for a Use Permit to Nevada County to allow the re-opening of the Idaho-Maryland Gold Mine.

The Use Permit application proposes underground mining to recommence at an average throughput of 1,000 tons per day.

On March 17, 2020, the Company provided an update to the application where all technical reports for the Draft Environmental Impact Report have been completed and the timeline for approval is expected to range from 12 to 18 months.

On December 16, 2019, the Company completed a 1 for 10 reverse split of the Company’s authorized and issued shares of common stock with a par value of $0.001 per share.

All references to the Company’s shares issued and outstanding have been adjusted to reflect this change.

On July 31, 2020, the Company completed a non-brokered private placement for a total of $3,272,875 through the issuance of 4,363,833 units (each a “Unit”) at a price of $0.75 per Unit (C$1.02 per Unit), with each Unit comprising one share of common stock (a “Share”) and one-half of one share purchase warrant.

Each whole warrant entitles the holder to acquire one Share at an exercise price of $1.00 until July 31, 2022.

The Company paid a total of $32,576 in finders fees and issued a total of 43,435 finders warrants, where each finder’s warrant entitles the holder to acquire one Share at a price of $1.00 until July 31, 2022.

To accommodate the lack of authorized capital to facilitate the closing of the private placement, the Company’s President and CEO surrendered 1,097,298 stock options priced between C$0.70 and C$2.40 per share.

On September 18, 2020, the Company announced an increase of the Company’s authorized capital from 40,000,000 shares of common stock with a par value of $0.001 per share to 400,000,000 shares of common stock with a par value of $0.001 per share.

On September 22, 2020, the Company completed a non-brokered private placement for a total of $250,000 through the issuance of 333,333 units at a price of $0.75 per Unit (C$1.02 per Unit), with each Unit comprising of one share of common stock and one-half of one share purchase warrant.

Each whole warrant entitles the holder to acquire one Share at an exercise price of $1.00 until September 21, 2022.

On September 22, 2020, the Company granted a total of 1,338,500 stock options to the President and CEO of the Company.

The stock options are exercisable at a price of $0.90 (C$1.20) per share with an expiry date of September 22, 2025.

Plan of Operations

As at July 31, 2020, we had a cash balance of $3,378,826, compared to a cash balance of $214,158 as of July 31, 2019.

Our plan of operations for the next 12 months is to continue the Use Permit process in Nevada County California, to re-open the Idaho-Maryland gold mine at the I-M Mine Property.

The Company submitted the application for a Use Permit to Nevada County on November 21 st 2019.

On April 28th, 2020, with a vote of 5-0, the Nevada County (“County”) Board of Supervisors approved the contract for Raney Planning & Management Inc.

(“Raney”) to prepare the Environmental Impact Report (“EIR”) and conduct contract planning services on behalf of the County for the proposed Idaho-Maryland Mine Project.

Raney will begin work immediately to review the technical studies submitted by Rise with the Use Permit application and initiate preparation of the Draft Environmental Impact Report (“Draft EIR”).

A general outline of remaining milestones in the process to approval of the permit is outlined as follows;

1) County planning staff and Raney prepare a Draft EIR which includes holding a public scoping meeting and public comments on which issues should be covered by the EIR;

2) Draft EIR is published for public comment;

3) Raney publishes a Final EIR which includes responses to public comments on the Draft EIR;

4) County decisionmakers review the Final EIR, certify the environmental document and consider approval of the Use Permit and Reclamation Plan at a public hearing.

The Company’s original estimate of the remaining timeline to approval ranges from December 2020 to May 2021.

Ancillary construction and operational permits would follow as needed.

Project Design

The Use Permit application proposes underground mining to recommence at an average throughput of 1,000 tons per day.

The existing Brunswick Shaft, which extends to ~3400 feet depth below surface, would be used as the primary rock conveyance from the I-M Mine Property.

A second service shaft would be constructed by raising from underground to provide for the conveyance of personnel, materials, and equipment.

Gold processing would be done by gravity and flotation to produce gravity and flotation gold concentrates.

Processing equipment and operations would be fully enclosed in attractive modern buildings and numerous mature trees located on the perimeter of the Brunswick site would be retained to provide visual shielding of aboveground project facilities and operations.

The Company would produce barren rock from underground tunneling and sand tailings as part of the project which would be used for creation of approximately 58 acres of level and useable industrial zoned land for future economic development in Nevada County.

A water treatment plant and pond, using conventional processes, would ensure that groundwater pumped from the mine is treated to regulatory standards before being discharged to the local waterways.

Detailed studies by professionals in the fields of civil and electrical engineering, biology, hydrology, cultural resources, traffic, air quality, human health, vibration, and sound have guided the design of the project.

Approximately 300 employees would be required if the mine reaches full production.

We currently have two full-time employees, which includes our Chief Executive Officer.

Our other officers and directors provide services to us on an as-needed basis, and we plan to rely on their efforts, as well as those of a number of independent consultants, to manage our operations for the foreseeable future.

Government Regulations

We plan to engage in mineral exploration and development activities and will accordingly be exposed to environmental risks associated with mineral exploration activity.

We are the operator of the I-M Mine Property.

exploration and development activities will be subject to extensive federal, state and local laws, regulations and permits governing

protection of the environment.

Among other things, its operations must comply with the provisions of the Federal Mine Safety and

Health Act of 1977 as administered by the United States Department of Labor.

plan is to conduct our operations in a way that safeguards public health and the environment.

We believe that our operations comply

with applicable environmental laws and regulations in all material respects.

costs associated with implementing and complying with environmental requirements can be substantial and possible future legislation

and regulations could cause us to incur additional operating expenses, capital expenditures, restrictions and delays in developing

or conducting operations on its properties, including the I-M Mine Property, the extent of which cannot be predicted with any

Staff Comments

Our exploration and development activities will be subject to extensive federal, state and local laws, regulations and permits governing protection of the environment.

Among other things, its operations must comply with the provisions of the Federal Mine Safety and Health Act of 1977 as administered by the United States Department of Labor.

Our plan is to conduct our operations in a way that safeguards public health and the environment.

We believe that our operations comply with applicable environmental laws and regulations in all material respects.

The costs associated with implementing and complying with environmental requirements can be substantial and possible future legislation and regulations could cause us to incur additional operating expenses, capital expenditures, restrictions and delays in developing or conducting operations on its properties, including the I-M Mine Property, the extent of which cannot be predicted with any certainty.

Not required.

Unresolved Staff Comments

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business