Rio Silver Inc. Completes Transaction With Peruvian Metals Corp.
16 January 2024 - 1:00AM
Rio Silver Inc. (TSXV:RYO) (“Rio Silver” or the “Company”) is
pleased to announce that the Company has sold its 50% interest in
the Palta Dorada Property to Peruvian Metals Corp. (“Peruvian
Metals”). The consideration for the sale is $250,000 US with the
Company retaining a 3% Net Smelter Royalty (“NSR” or Royalty”).
Total payments from the NSR will be capped at $2 million US while
the Company is guaranteed $ 250,000 in minimum royalty payments
over the next five years.
An initial payment of $25,000 US has been
received and four monthly payments due of $25,000 USD with a final
$125,000 US payment being received in June, 2024. The royalty
payments will be paid semi-annually having a guaranteed minimum
semi annual payment amount of $25,000 US over the next five year
period starting December 2024. Cash flow from Palta Dorada,
potentially generating larger semi-annual royalty payments to the
Company, is expected late 2024 to early 2025 with the property
being located near Peruvian Metals’ Aguila Norte Processing
Plant.
The Company is also pleased to announce
significant progress towards gaining social license in order to
facilitate a diamond drilling campaign at the Joramina zone forming
the western flank of the Company’s flagship, Niñobamba Au-Ag
project in South Central Peru. The Company has assisted the
communities in the area to reorganize their affairs allowing them
to complete the necessary access agreements which will allow them
to receive the benefits that successful exploration will generate.
Chris Verrico, Chief Executive Officer of Rio
Silver commented: “The sale of our Palta Dorada interest to
Peruvian Metals allows us to retain a significant NSR(Net Smelter
Royalty) on the property and focus efforts on our Ninobamba area
properties. Peruvian Metals is now able to fast track it’s
development augmenting Rio Silver’s, highly valuable, 3% royalty
stream. We also welcome the immediate cash payments over the next
several months along with the guaranteed royalty payments to offset
annual fixed costs. This cash will aid the Company to explore and
develop our flagship Niñobamba Au-Ag project and pick up where
Newmont had left off, internally concluding that Jorimina had
significant potential, enough to support a robust midsized mining
enterprise with significant upside potential. Our 100% unincumbered
ownership of the Niñobamba/Jorimina properties will propel Rio
Silver’s advancement up and amongst Peru’s most notable new
precious metal discoveries.”
Jeffrey Reeder, P Geo, a qualified person as defined in National
Instrument 43-101, has prepared, supervised the preparation, or
approved the scientific and technical disclosure contained in this
news release.
About Rio Silver Inc.
Rio Silver is a Canadian Exploration and Development company
focused on Peru. The Company holds a 100% interest in the very
prospective Ag-Au Ninobamba where more than $10 million US has been
spent on exploration by the Company and previous operators. The
Company continues to review precious and base metal properties in
Peru, and has been maintaining its interest in its Ontario Gerow
Lake Property.
For further information on Rio Silver Inc. please
visit www.riosilverinc.com.
Rio Silver Inc. is a Canadian resource company
listed on the TSX Venture Exchange: Symbol “RYO”
For additional information, contact: Chris
Verrico Tel: (604) 762-4448
Email: chris.verrico@riosilverinc.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Disclosure Regarding Forward-Looking Statements: This press
release contains certain “Forward-Looking Statements” within the
meaning of applicable securities legislation. We use words such as
“might”, “will”, “should”, “anticipate”, “plan”, “expect”,
“believe”, “estimate”, “forecast” and similar terminology to
identify forward looking statements and forward-looking
information. Such statements and information are based on
assumptions, estimates, opinions and analysis made by management in
light of its experience, current conditions and its expectations of
future developments as well as other factors which it believes to
be reasonable and relevant. Forward-looking statements and
information involve known and unknown risks, uncertainties and
other factors that may cause our actual results to differ
materially from those expressed or implied in the forward-looking
statements and information and accordingly, readers should not
place undue reliance on such statements and information. Risks and
uncertainties are more fully described in our annual and quarterly
Management’s Discussion and Analysis and in other filings made by
us with Canadian securities regulatory authorities and available at
www.sedar.com.While the Company believes that the expectations
expressed by such forward-looking statements and forward-looking
information and the assumptions, estimates, opinions and analysis
underlying such expectations are reasonable, there can be no
assurance that they will prove to be correct. In evaluating
forward-looking statements and information, readers should
carefully consider the various factors which could cause actual
results or events to differ materially from those expressed or
implied in the forward-looking statements and forward-looking
information.
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