RIO2 Announces Receipt of First Deposit of US$25 Million from Fenix GOLD Stream
RIO2 ANNOUNCES RECEIPT OF FIRST DEPOSIT OF US$25 MILLION FROM
FENIX GOLD STREAM
For Immediate Release March 29, 2022
TORONTO, ON - Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) today
announces that it has received a deposit payment of US$25,000,000 from Wheaton Precious Metals
International Ltd. (“WPMI”) in connection with the prev iously announced precious metals purchase
agreement on Rio2’s Fenix Gold Project in Chile (the “Gold Stream”).
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, W PMI 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 followin g 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.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively
“forward-looking information”) within the meaning of applicable securities laws relating to Rio2’s
planned development of its Fenix Gold Project and other aspects of Rio2’s anticipated future operations
and plans. In addition, without limiting the generality of the foregoing, this news release contains
forward-looking information pertaining to the following: the Gold Stream, additional depo sit
payments under the Gold Stream, the potential development of a mine at the Fenix Gold Project, the
timing of construction at the Fenix Gold Project, the expected timeline for the commencement of gold
production from the Fenix Gold Project, the expected rate of production at the Fenix Gold Project and
other matters ancillary or incidental to the foregoing.
All statements included herein, other than statements of historical fact, may be forward- looking
information and such information involves various risks and uncertainties. Forward- looking
information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”,
“continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”,
“could”, “might”, “should”, “believe”, and similar expressions. The forward- looking information is
based on certain key expectations and assumptions made by Rio2’s management which may prove to
be incorrect, including but not limited to: expectations concer ning prevailing commodity prices,
exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; legislative and
regulatory environment of Chile; future production rates and estimates of capital and operating costs;
estimates of reserves and resources; anticipated timing and results of capital expenditures; the
sufficiency of capital expenditures in carrying out planned activities; performance; the availability and
cost of financing, labor and services; and Rio2’s ability to access capital on satisfactory terms.
Rio2 believes the expectations reflected in these forward- looking statements are reasonable, but no
assurance can be given that these expectations will prove to be correct and such forward- looking
statements in this news release should not be unduly relied upon. A description of assumptions used
to develop such forward- looking information and a description of risk factors that may cause actual
results to differ materially from forward -looking information can be found in Rio2's disclosure
documents on the SEDAR website at www.sedar.com. These risks and uncertainties include, but are
not limited to: risks and uncertainties relating to the completion of the financings as described herein,
and management’s ability to anticipate and manage the factors and risks referred to herein. Forward-
looking statements included in this news release are made as of the date of this news release and such
information should not be relied upon as representing its views as of any date subsequent to the date
of this news release. Rio2 has attempted to identify important factors that could cause actual results,
performance or achievements to vary from those current expectations or estimates expressed or
implied by the forward-looking information. However, there may be other factors that cause results,
performance or achievements not to be as expected or estimated and that could cause actual results,
performance or achievements to differ materially from current expectations. Rio2 disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required by applicable securities
legislation.
To learn more about Rio2 Limited, please visit: w ww.rio2.com or Rio2's SEDAR profile at
www.sedar.com.
ON BEHALF OF THE BOARD OF RIO2 LIMITED
Alex Black
President, CEO & Director
Email: [email protected]
Tel: +1 (604) 260-2696
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this
release.