VANCOUVER, British Columbia, Aug. 10, 2021 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) announces that it has closed the underwritten public offering (the “Public Offering”) of common shares of the Company (“Common Shares”) and the private placement of Common Shares (the “Private Placement”) to Wheaton Precious Metals Corp. (“Wheaton”), previously announced 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 (approximately the Canadian dollar equivalent of US$5 million). The Private Placement was completed on a non-brokered basis.
Not less than US$20 million of the aggregate net proceeds of the Public Offering and the Private Placement 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.
The Common Shares issued pursuant to the Private Placement are subject to a hold period of four months plus one day from the date of closing of the Private Placement. Final acceptance by the TSX Venture Exchange (the “TSXV”) of the Public Offering and the Private Placement is subject to the completion of customary post-closing filings.
DLA Piper (Canada) LLP acted as legal counsel to Rio2 and Borden Ladner Gervais LLP (BLG) acted as legal counsel to the underwriters.
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