Rio Silver Completes Sale of Palta Dorada Ag-Au Property, Peru
Rio Silver Completes Sale of Palta Dorada Ag-Au Property, Peru
VANCOUVER, British Columbia, Oct. 08, 2024 -- Rio Silver Inc. (TSXV:RYO) (“Rio Silver” or the “Company”) is pleased to
announce that the Company has received the balance of the $250,000 US cash required for the sale of its 50% interest in the
Palta Dorada Au-Ag Property, from Peruvian Metals Corp. (“Peruvian”). Additional consideration for the sale has the Company
retaining a 3% Net Smelter Royalty (“NSR” or “Royalty”) on the property. Total payments from the NSR will be capped at $2
million US while the Company is guaranteed US $250,000 in minimum royalty payments over the next five years.
The royalty payments due have guaranteed minimum semi-annual payments of $25,000 US payable over a five year period,
commencing December 2024. Cash flow generated from the Palta Dorada Royalty could potentially exceed the minimum semi
-annual royalty payment amount, as Peruvian advances a bulk sampling campaign at Palta Dorada, expected to commence
Q1 2025 and augmented by its proximity to Peruvian Metals’ Aguila Norte Processing Plant.
The Company is also pleased to announce that following minor delays in the permitting cycle, it remains confident that it will
be in receipt of full permission from MEM (Ministry of Energy and Mines, Peru) during Q4, 2024, for a Diamond Drilling
program at the Jorimina project. Jorimina is a prominently mineralized zone, hosting gold, silver and copper and forming the
western flank of the Company’s flagship, Niñobamba Ag-Au target, in south-central Peru.
Chris Verrico, Chief Executive Officer of Rio Silver commented: "The sale of our 50% interest in Palta Dorada to Peruvian
Metals provides the Company with a significant NSR (Net Smelter Royalty) enabling us to focus on our Ninobamba project.
Peruvian is now able to finance it’s 100% consolidated ownership of the Palta Dorada property enabling a fast-track
development plan which could augment Rio Silver’s, highly valuable, 3% royalty stream. This non-dilutive cash source (royalty
stream) will aid the Company’s exploration and development of its flagship Niñobamba Au-Ag and Jorimina properties located
in the highly productive and under explored Ayacucho Silver – Gold belt in south-central Peru and continue on where Newmont
had left off. Newmont had discovered Jorimina, and in an internal preliminary feasibility study concluded, in a 2012 report, that
Jorimina has significant potential, significant enough to support a robust mid-sized mining enterprise with the further potential
of becoming something much larger, due to the proximity of a mineralizing porphyry source. Our 100% ownership of the
Niñobamba/Jorimina properties will propel Rio Silver’s advancement amongst Peru’s most notable precious metal developers.”
Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation,
or approved the scientific and technical disclosure contained in this news release.
About Rio Silver Inc.
Rio Silver is a Canadian Exploration and Development company with an oversized percent of insider, friends and family
ownership, focused on Peru. The Company holds a 100% interest in the very prospective Ag-Au Ninobamba where more than
$10 million US has been spent on exploration by the Company and previous operators. The Company continues to review
precious and base metal properties in Peru while maintaining its interest in its Ontario Gerow Lake, critical metals project.
For further information on Rio Silver Inc. please visit www.riosilverinc.com
For Investor Inquiries:
Christopher Verrico, President, CEO
Tel: (604) 762-4448
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this new
release, other than statements of historical facts, that address events or developments that the Company expects to occur,
are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but
not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and
similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company
believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking
statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include
market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors
are cautioned that any such statements are not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs,
estimates and opinions of the Company’s management on the date the statements are made. Except as required by
applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event
that management's beliefs, estimates or opinions, or other factors, should change.