Rio2 Ltd said it has closed the sale of the Anocarire mining concessions by Fenix Gold Ltda., a wholly-owned subsidiary of the company, to Andex Minerals Chile SpA following the successful completion of Andex's purchase option.
In a statement, Jose Luis Martinez, Rio2's executive vice president and chief strategy officer, said: "The sale of this non-core asset adds an additional US$5,000,000 of available funding to support Rio2's strategic business initiatives other than the construction of the Fenix Gold Project which has its project financing arranged to production."
The Anocarire mining concessions were one of the non-core assets resulting from the company's business combination with Atacama Pacific Corporation in July 2018. The concessions are located in the district of Putre, Province of Parinacota, Region I, Chile, approximately 120 kilometres (km) east of Arica and 60 km southeast of the town of Putre. There are no development synergies between the future Fenix Gold Mine and the Anocarire concessions.
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The total consideration received by Rio2 are cash payments totalling US$6,400,000 and a 1.5% NSR (net smelter royalty) made up of US$5,000,000 received at closing and US$1,400,000 received in partial payments over the past three years; and the grant of a 1.5% net smelter return royalty in respect of all mining products extracted from the Project from the start of commercial production for a period of one hundred years.
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.
The company 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 (TSX-V:RIO, OTCQX:RIOFF) 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.
Contact the author at jon.hopkins@proactiveinvestors.com