To Undertake US$5 Million Non-Brokered Private Placement
Rio2 Limited (TSXV: RIO; OTCQX: RIOFF) has unveiled the pricing of its previously announced marketed public offering of common shares of the company at a price of $0.65 per Common Share.
Additionally, the company’s previously announced non-brokered private placement of Common Shares to Wheaton Precious Metals Corp. will also be conducted at a price of $0.65 per Common Share.
Joint Bookrunners co-lead underwriters Scotiabank, CIBC Capital Markets and Raymond James, along with Cantor Fitzgerald Canada Corporation, Sprott Capital Partners LP, and Cormark Securities Inc. will act as the underwriters for the Offering.
Pursuant to an underwriting agreement entered into today between the company and the Underwriters. the Underwriters have agreed to purchase 38,500,000 Common Shares from the company for total gross proceeds of approximately C$25 million.
The company has granted the Underwriters an over-allotment option to purchase up to an additional 15% of the Common Shares issued pursuant to the Offering on the same terms exercisable in whole or in part, at any time and from time to time, up to 30 days from and including the closing date of the Offering.
Not less than US$20 million of the net proceeds of the Offering plus the proceeds of the Private Placementwill be used to fund development of the company’s Fenix Gold Project in Chile and associated mine and camp infrastructure (which, for greater certainty includes development of related infrastructure by Lince S.A., a wholly owned subsidiary of the Company).
The remaining Combined Proceeds is expected to be used for general working capital purposes. Any proceeds from the exercise of the Over-Allotment Option will be added to the company’s working capital.
The Offering is scheduled to close on or about August 6, 2021 and is subject to customary closing conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the TSX Venture Exchange.The completion of the Offering is also subject to the completion of the Private Placement.
RIO2 PRIVATE PLACEMENT
As contemplated by the non-binding term sheet announced by the company yesterday, under the Private Placement, Wheaton has agreed to purchase 9,792,880 Common Shares from treasury at the price of $0.65 for proceeds of C$6,365,372 (approximately the Canadian dollar equivalent of US$5 million). The proceeds from the Private Placement will be used to further fund development of the Fenix Gold Project and associated mine and camp infrastructure (which, for greater certainty includes development of related infrastructure by Lince S.A., a wholly owned subsidiary of the company).
The Private Placement is scheduled to close on or about August 6, 2021.
DLA Piper (Canada) LLP is acting as legal counsel to Rio2 in respect of the Offering and the Private Placement. Borden Ladner Gervais LLP is acting as legal counsel to the Underwriters in respect of the Offering. McCarthy Tetrault LLP is acting as legal counsel to Wheaton in respect of the Private Placement.
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.
For further information please visit: https:// www.rio2.com
