Rio Silver Completes Sale of Palta Dorada Ag-Au Property, Peru
09 October 2024 - 12:00AM
Rio Silver Inc. (TSXV:RYO) (“Rio Silver” or the “Company”) is
pleased to announce that the Company has received the balance of
the $250,000 US cash required for the sale of its 50% interest in
the Palta Dorada Au-Ag Property, from Peruvian Metals Corp.
(“Peruvian”). Additional consideration for the sale has the Company
retaining a 3% Net Smelter Royalty (“NSR” or “Royalty”) on the
property. Total payments from the NSR will be capped at $2 million
US while the Company is guaranteed US $250,000 in minimum royalty
payments over the next five years.
The royalty payments due have guaranteed minimum semi-annual
payments of $25,000 US payable over a five year period, commencing
December 2024. Cash flow generated from the Palta Dorada Royalty
could potentially exceed the minimum semi-annual royalty payment
amount, as Peruvian advances a bulk sampling campaign at Palta
Dorada, expected to commence Q1 2025 and augmented by its proximity
to Peruvian Metals’ Aguila Norte Processing Plant.
The Company is also pleased to announce that following minor
delays in the permitting cycle, it remains confident that it will
be in receipt of full permission from MEM (Ministry of Energy and
Mines, Peru) during Q4, 2024, for a Diamond Drilling program at the
Jorimina project. Jorimina is a prominently mineralized zone,
hosting gold, silver and copper and forming the western flank of
the Company’s flagship, Niñobamba Ag-Au target, in south-central
Peru.
Chris Verrico, Chief Executive Officer of Rio Silver commented:
"The sale of our 50% interest in Palta Dorada to Peruvian Metals
provides the Company with a significant NSR (Net Smelter Royalty)
enabling us to focus on our Ninobamba project. Peruvian is now able
to finance it’s 100% consolidated ownership of the Palta Dorada
property enabling a fast-track development plan which could augment
Rio Silver’s, highly valuable, 3% royalty stream. This non-dilutive
cash source (royalty stream) will aid the Company’s exploration and
development of its flagship Niñobamba Au-Ag and Jorimina properties
located in the highly productive and under explored Ayacucho Silver
– Gold belt in south-central Peru and continue on where Newmont had
left off. Newmont had discovered Jorimina, and in an internal
preliminary feasibility study concluded, in a 2012 report, that
Jorimina has significant potential, significant enough to support a
robust mid-sized mining enterprise with the further potential of
becoming something much larger, due to the proximity of a
mineralizing porphyry source. Our 100% ownership of the
Niñobamba/Jorimina properties will propel Rio Silver’s advancement
amongst Peru’s most notable precious metal developers.”
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
with an oversized percent of insider, friends and family ownership,
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 while maintaining its interest in its Ontario Gerow Lake,
critical metals project.
For further information on Rio Silver Inc. please visit
www.riosilverinc.com
For Investor Inquiries:
Christopher Verrico, President, CEO
Tel: (604) 762-4448
Email: chris.verrico@riosilverinc.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward Looking Statements
This news release includes certain statements
that may be deemed “forward-looking statements”. All statements in
this new release, other than statements of historical facts, that
address events or developments that the Company expects to occur,
are forward-looking statements. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words “expects”, “plans”, “anticipates”,
“believes”, “intends”, “estimates”, “projects”, “potential” and
similar expressions, or that events or conditions “will”, “would”,
“may”, “could” or “should” occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materially from
those in the forward-looking statements. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include market prices, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. Forward-looking statements are
based on the beliefs, estimates and opinions of the Company’s
management on the date the statements are made. Except as required
by applicable securities laws, the Company undertakes no obligation
to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors,
should change.
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