Rio2 Limited (TSX-V: RIO) (OTCQX: RIOFF) (BVL: RIO) announces that the Chilean Internal Revenue Service has issued Fenix Gold Limitada, Rio2’s wholly owned subsidiary in Chile, an IVA/VAT refund in the amount of CLP$4,073,551,385 (the equivalent of approximately US$5,092,000 at current exchange rates).
In Chile, an IVA/VAT refund is usually not received until after a mining company achieves commercial production. However, Fenix Gold Limitada applied for the refund of IVA/VAT credits under a special program that allows IVA/VAT paid on expenditures that are capital in nature to be refunded at an accelerated pace. In January 2023, Rio2’s other wholly owned Chilean subsidiary, Lince S.A., received an IVA/VAT refund of US$1.3 million under the same program.
The abovementioned refunds will provide additional working capital for the continued advancement of the Fenix Gold Project.
Andrew Cox, President, CEO, and Director commented, “We are very pleased to have received this timely IVA/VAT refund. With these funds, Rio2 and Fenix Gold are now funded, at our current cash burn rate, into Q2, 2024. We recognize the tremendous efforts of our accounting staff in Chile to make this happen, as we patiently wait for our Fenix Gold administrative appeal to be heard. To date, the company has not received confirmation from the Chilean authorities as to when the appeal will be heard.”
ABOUT RIO2 LIMITED
Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as successful capital markets track record. Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy. Rio2 and its wholly owned subsidiary, Fenix Gold Limitada, are companies with the highest environmental standards and responsibility with the firm conviction that it is possible to develop mining projects that respect the three axes (Social, Environment, Economics) of sustainable development. As related companies, we reaffirm our commitment to apply environmental standards beyond those that are mandated by regulators, seeking to protect and preserve the environment of the territories that we operate in.
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