Rio2 Limited (TSX-V: RIO) (OTCQX: RIOFF) (BVL: RIO) announces that it has closed the bought deal financing initially announced on July 23, 2019. The Company issued 62,500,000 units of the Company (which includes 7,500,000 Units issued pursuant to the exercise in full of the over-allotment option) at a price of $0.40 per Unit for aggregate gross proceeds of $25,000,000.

Each Unit consists of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each full warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Common Share at an exercise price of $0.50 for a period of 36 months following the closing of the Offering.

The net proceeds of the Offering will be used to complete the following activities for the Company’s 100% owned Fenix Gold Project; complete the Project’s EIA baseline study, prepare and file the EIA study with the Chilean authorities, complete engineering studies in preparation for future mine construction activities, commence permitting activities for the project, commence the review of financing options for construction of the project and continue social activities related to the project, as well as for general corporate and working capital purposes.

Jose Luis Martinez, EVP and Chief Strategy Officer, commented: “We are delighted that we have managed to secure this milestone financing in the context of a challenging financing market. Having an attractive development project, a clear path forward, a well-established technical and financial markets team, and a more favourable precious metals environment, has led to this successful outcome. We are thankful to existing shareholders and new shareholders for their strong support.”

The Common Shares and the Warrants issued pursuant to the Offering, and any Common Shares ‎issued upon the exercise of Warrants, are subject to a hold period of four months plus one ‎day from the date of closing of the Offering. The Company previously received TSX Venture Exchange conditional acceptance for the Offering on August 8, 2019 and will now seek TSXV final acceptance for the Offering.

Cormark Securities Inc. acted as sole underwriter in connection with the Offering. The Company paid the Underwriter a cash commission equal to ‎‎6% of the gross proceeds from the Offering.

DLA Piper (Canada) LLP acted as legal counsel to Rio2 and Cassels Brock & Blackwell LLP acted as legal counsel to the Underwriter.

About Rio2 Limited

Rio2 is building a multi-asset, multi-jurisdiction, precious metals company focused in the Americas.  With projects in Chile and Peru, Rio2 will continue pursuing additional strategic acquisitions to compile an attractive portfolio of precious metals assets where it can deploy its operational excellence and responsible mining practices to create value for its shareholders.

Fenix Gold Project

The results of the updated pre-feasibility study for Rio2’s 100% owned Fenix Gold Project located in the Atacama Region, Chile, are now expected to be released on or about August 30, 2019. The updated PFS is strategically focused on an optimally configured starter project which will facilitate the shortest possible timeline to construction/production, a lower initial capex, higher grades initially being mined, and a lower initial strip ratio as compared with the 2014 PFS.