Rio2 Prices C$25 Million Marketed Public Offering and US$5 Million Non-Brokered Private Placement

About this update from Rio2 Limited

[{"type":"text","content":" VANCOUVER, British Columbia, July 21, 2021 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) is pleased to announce the pricing of its previously announced marketed public offering (the “Offering”) of common shares of the Company (“Common Shares”) 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. (“Wheaton”) will also be conducted at a price of $0.65 per Common Share (the “Private Placement”). RIO2 EQUITY OFFERING Scotiabank, CIBC Capital Markets and Raymond James (collectively, the “Joint Bookrunners”), as joint bookrunners and co-lead underwriters, along with Cantor Fitzgerald Canada Corporation, Sprott Capital Partners LP, and Cormark Securities Inc. (collectively with the Joint Bookrunners, the “Underwriters”) will act as the underwriters for the Offering. Pursuant to an underwriting agreement entered into today between the Company and the Underwriters (the “Underwriting Agreement”), the Underwriters have agreed to purchase 38,500,000 Common Shares from the Company for total gross proceeds of approximately $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 (the “Over-Allotment Option”) 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 Placement (the “Combined 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.‎ Any proceeds from the exercise of the Over-Allotment Option will be added to the Company’s working capital. Pursuant to the terms of the Underwriting Agreement, the Underwriters will be paid a cash commission equal to 6.0% of the gross proceeds of the Offering (including any gross proceeds raised on the exercise of the Over-Allotment Option), subj...

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