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Rio2 Signs Definitive Precious Metals Purchase Agreement with Wheaton Precious Metals

Rio2 Limited, a mining company with a focus on development and mining operations, reports that it has signed a definitive precious metals purchase agreement with Wheaton Precious Metals International Ltd, a 100% owned subsidiary of Wheaton Precious Metals Corp., in relation to the Company’s Fenix Gold Project in Chile.

Rio2 Signs Definitive Precious Metals Purchase Agreement with Wheaton Precious Metals.

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The Gold Stream is considered to be one of the components of the mine construction funding totaling almost US$125 to US$135 million to financially support the construction of a mine at Rio2’s wholly-owned Fenix Gold Project in Chile.

The Gold Stream agreement was signed after the successful completion of Rio2’s C$35.1 million equity offering in August 2021. Thus, Rio2 is now in a position to complete the earlier declared US$50 to US$60 million senior debt project finance facility with BNP Paribas mandated as the single lead arranger.

Entering into this definitive agreement with Wheaton International represents a significant milestone for Rio2 and secures the foundation of the Mine Financing Package setting the Company on a solid path for development and a fast track to production.

Jose Luis Martinez, EVP, Chief Strategy Officer, Rio2 Limited

Under the Gold Stream, Wheaton International will acquire 6.0% of the gold production from the Fenix Gold Project till 90,000 ounces of gold have been offered and 4.0% of the gold production until 140,000 ounces of gold have been offered, following which the stream will decrease to 3.5% of the gold production for the mine life.

Wheaton International will complete an upfront cash deposit of US$50 million, with US$25 million available after the closing of the Gold Stream agreement, where the remaining US$25 million is payable following the receipt of the EIA approval for the Mine with both payments depending on the conclusion of customary conditions.

Additionally, Wheaton International will make continuous payments for gold ounces provided equal to 18% of the spot gold price until the value of gold provided minus the production payment is equal to the upfront consideration of US$50 million. At this point, the production payment will rise to 22% of the spot gold price.


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