Funds To Support Fenix Gold Development
Rio2 Limited (TSXV: RIO) (OTCQX: RIOF) has closed an underwritten public offering of common shares of the company and the private placement of common shares to Wheaton Precious Metals Corp. for combined gross proceeds of C$35,144,122.
A total of 44,275,000 common shares were issued pursuant to the Public Offering at the price of C$0.65 per share, inclusive of 5,775,000 common shares issued upon the exercise of the over-allotment option in full, for aggregate gross proceeds to Rio2 of C$28,778,750.
Scotiabank, CIBC Capital Markets and Raymond James, as joint bookrunners and co-lead underwriters, along with Cantor Fitzgerald Canada Corporation, Sprott Capital Partners LP, and Cormark Securities Inc. acted as the underwriters for the Public Offering.
A total of 9,792,880 Common Shares were issued to Wheaton pursuant to the Private Placement at the price of C$0.65 per share for gross proceeds to Rio2 of C$6,365,372
Not less than US$20 million of the aggregate net proceeds will be used to fund development of the company’s 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 remaining combined proceeds is expected to be used for general working capital purposes.
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/
