Rio2 Limited (TSX-V: RIO) (OTCQX: RIOFF) (BVL: RIO) announces that it has received a deposit payment of US$25,000,000 from Wheaton Precious Metals International Ltd. in connection with the previously announced precious metals purchase agreement on Rio2’s Fenix Gold Project in Chile.
The Gold Stream is a component of the previously announced US$125 to US$135 Million financing package to fully fund the Fenix Gold Project to production. Under the Gold Stream, WPMI will purchase 6.0% of the gold production until 90,000 ounces of gold have been delivered, thereafter dropping to 4.0% of the gold production until 140,000 ounces of gold have been delivered, after which the Gold Stream will reduce to 3.5% of the gold production for the life of mine from the Fenix Gold Project. In addition, WPMI will make ongoing production payments for gold ounces delivered equal to 18% of the spot gold price until the value of gold delivered to WPMI less the production payments is equal to the total upfront consideration payable by WPMI under the Gold Stream of US$50 million, at which point the production payment will increase to 22% of the spot gold price. A second deposit of US$25,000,000 will be paid to Rio2 following the receipt of the EIA approval for the Fenix Gold Project, and subject to satisfaction of certain other customary conditions.
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 a 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. In addition to the Fenix Gold Project in development in Chile, Rio2 Limited continues to pursue additional strategic acquisitions where it can deploy its operational excellence and responsible mining practices to build a multi-asset, multi-jurisdiction, precious metals company.
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We acknowledge the [financial] support of the Government of Canada.