Rio2 Announces $13.3 Million Bought Deal Private Placement With Cormark
Gold junior Rio2 (CVE:RIO) announced a bought deal private placement with Cormark Securities today with total gross proceeds expected at $13.3 million (C$17.5 million).
The company also announced that Eric Sprott has agreed to purchase $7 million (C$9.2 million) of the offering. On completion of the offering, Eric Sprott will own 19.9% of the issued and outstanding shares of the company on a partially diluted basis.
Proceeds will be used to advance the Fenix gold project. An updated pre-feasibility study is expected to be released August 30.
"The updated PFS is strategically focused on an optimally configured starter project which will facilitate the shortest possible timeline to construction/production, a lower initial capex, higher grades initially being mined, and a lower initial strip ratio as compared with the 2014 PFS," the company said in a statement.
Rio2 has operations in Peru and Chile. It is based in Canada.CORRECTION: Headline changed to clarify financing was bought deal private placement