Rio2 Limited (TSX-V:RIO, OTCQX:RIOFF) said it has boosted its balance sheet with the sale of a package of non-core royalty interests in Chile to Osisko Gold Royalties (TSX:OR) Ltd for a total of US$5 million.
The sale included Rio2’s 1.5% royalty on the Anocarire project and its 1.25% royalty on the Horizonte project, both in Chile.
"We are sincerely thankful to Osisko Gold Royalties (TSX:OR) for their support during this time of challenging market conditions," said Alex Black, the CEO of Rio2, which is focused on advancing its Fenix gold project in Chile to production.
READ: Rio2 updates on Fenix gold EIA; files appeal
"The monetization of these non-core royalty interests provides Rio2 with a welcome boost to its balance sheet and working capital," he added.
As previously reported, Rio2 is currently in an administrative appeal process with the Chilean Government about the rejection of the Environmental Impact Assessment (EIA) for the development of its Fenix gold project.
Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy.
It says the project is one of the largest undeveloped gold oxide, heap leach projects in the Americas, hosting a Measured and Indicated (M&I) mineral resource of five million ounces of gold which Rio2 believes will make a positive contribution to the Atacama Region and Chile.
Contact the writer at giles@proactiveinvestors.com