Business
Rio2 Limited and Atacama Pacific Gold Corporation Complete Business Combination
TORONTO, July 24, 2018 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2”) (TSX-V:RIO) and Atacama Pacific Gold Corporation (“Atacama Pacific”) (TSX-V:ATM) are pleased to
About this update from Rio2 Limited
[{"type":"text","content":" TORONTO, July 24, 2018 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2”) (TSX-V:RIO) and Atacama Pacific Gold Corporation (“Atacama Pacific”) (TSX-V:ATM) are pleased to announce that the business combination of Rio2 and Atacama has now been completed by way of a court approved plan of arrangement through which the companies amalgamated as a single entity (the “Arrangement”). The combined company that resulted from the Arrangement (“Rio2 Limited”) will continue to operate under the name “Rio2 Limited” and will be managed by Rio2’s existing executive team led by Alex Black as President and Chief Executive Officer. Alex Black, President and Chief Executive Officer of Rio2 Limited, stated, “Our management team is now focused on undertaking the next phase of development of the Cerro Maricunga Gold Project (“Cerro Maricunga”) which is located in Chile, a well established mining jurisdiction. With over 5.25 million ounces of measured and indicated resources and 3.74 million ounces of proven and probable reserves, Cerro Maricunga is one of the largest undeveloped gold oxide projects in the Americas. Since completing due diligence and announcing the Arrangement, the Rio2 team has been analyzing the 2014 Prefeasibility Study of Cerro Maricunga with a view towards optimizing key project components and reducing capex. We see a number of similarities between Cerro Maricunga and the La Arena gold mine located in Peru, that the Rio2 management team was responsible for building and operating between 2009 to 2015. As was the case with La Arena, we believe we can build a starter project at Cerro Maricunga focused on higher-grade, near surface mineralization that will help minimize startup capex and expand production using cashflow. In the comining weeks, we will publicly announce our development plan for the next 12 months which will include a definitive feasibility study for the project in H2 2019.” The Arrangement was completed under the Business Corporations Act (Ontario) (“OBCA”). Prior to the effective time of the Arrangement, Atacama Pacific continued from the Canada Business Corporations Act to the OBCA. Pursuant to the terms of the Arrangement, each Atacama Pacific shareholder received 0.6601 common shares of Rio2 Limited for each Atacama Pacific common share held and each Rio2 shareholder received 0.6667 common shares of Rio2 Limited for each R...