RIO2 EXPANDS IN LATIN AMERICA WITH THE ACQUISITION OF THE PRODUCING CONDESTABLE MINE

Rio2 Limited has announced a significant strategic acquisition that transforms the company into a diversified Latin American precious metals producer. The Vancouver-based company has entered into a definitive agreement to acquire the producing Condestable Mine, marking a major expansion of its operations in the region. The acquisition represents a strategic shift for Rio2, positioning it as a gold-focused miner with meaningful copper exposure through the newly acquired asset.

To support this transformative transaction, Rio2 has secured a substantial C$140 million bought deal equity financing arrangement. This concurrent financing demonstrates strong institutional support for the acquisition and ensures the company has adequate capital to complete the transaction and potentially fund future development activities. The size of the financing relative to the acquisition suggests this is a material transaction that will significantly impact Rio2's operational profile and market positioning.

The acquisition of a producing mine represents a strategic evolution for Rio2, providing immediate cash flow generation and operational diversification. The Condestable Mine's copper component offers the company exposure to the critical metals sector, which has seen increased investor interest due to electrification and energy transition trends. This diversification into copper production alongside Rio2's gold focus aligns with broader industry trends toward multi-commodity portfolios that can provide more stable revenue streams and reduced commodity price risk.

The transaction positions Rio2 for potential further consolidation opportunities in Latin America, a region known for its rich mineral endowments and established mining infrastructure. With a producing asset now in its portfolio, the company gains operational expertise and regional presence that could facilitate additional acquisitions or development projects. The successful completion of this acquisition and the substantial equity raise demonstrate Rio2's ability to execute complex transactions and access capital markets for growth initiatives.