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Rio2 sells non-core royalty package, welcomes ‘boost' to its balance sheet and working capital

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(Kitco News) - On Tuesday, Rio2 Limited (TSXV: RIO) announced that it has entered into a binding agreement to sell a package of Chilean royalty interests to Osisko Gold Royalties for aggregate consideration of US$5,000,000.

In a statement, the company said that the agreement includes Rio2’s 1.5% royalty on the Anocarire project and a 1.25% royalty on the Horizonte project, both located in Chile.

Rio2 added it is currently in an administrative appeal process with the Chilean Government with respect to the rejection of the Environmental Impact Assessment for the development of its Fenix gold project, as previously outlined in a press release dated September 7, 2022.

Alex Black, President and CEO of Rio2, stated, “We are sincerely thankful to Osisko Gold Royalties for their support during this time of challenging market conditions. The monetization of these non-core royalty interests provides Rio2 with a welcome boost to its balance sheet and working capital.”

Rio2 indicated it is focused on taking its Fenix gold project in Chile to production in the shortest possible timeframe based on a staged development strategy.

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