Rio Silver receives royalty payment from Magma Silver

Executive Summary

• Rio Silver Inc. received the first $100,000 USD advanced royalty payment from Magma Silver Corp. under the option agreement for the Ninobamba gold-silver property in Peru.
• The company confirms it will receive an additional 2.5 million common shares of Magma Silver on April 15, 2026, bringing the total equity position to 5 million shares (2.5 million already received).
• The release also discloses the grant of 1.62 million stock options to directors, officers, and consultants, which is a routine administrative action but included here due to the specific financial terms provided.

Key Details

• Royalty Payment: Rio Silver received $100,000 USD as the first advanced royalty payment from Magma Silver.
• Option Agreement Terms:
  • Magma Silver has the right to earn a 100% interest in the Ninobamba project upon full exercise.
  • Total payments under the agreement amount to $260,000 USD (received) plus milestone payments of up to $2 million USD.
  • This includes $500,000 USD in advanced royalty payments to be paid over the next five years.
  • The initial $100,000 USD payment is credited against a 2% Net Smelter Return (NSR) royalty retained by Rio Silver.
• NSR Repurchase Right: Magma Silver retains the right to repurchase 1% of the NSR for $1 million USD at any time prior to commercial production.
• Equity Issuance:
  • Rio Silver previously received 2.5 million common shares of Magma Silver.
  • An additional 2.5 million common shares will be issued to Rio Silver on April 15, 2026.
• Stock Option Grants:
  • Total options granted: 1.62 million.
  • Exercise price: $0.43 CAD per common share.
  • 800,000 options granted to directors and officers, expiring March 31, 2031.
  • 820,000 options granted to consultants, expiring March 31, 2028.
  • Vesting is in accordance with the stock option plan and subject to TSX Venture Exchange acceptance.

Notable Quotes

• "This is an important milestone for Rio Silver as we begin to realize value from our royalty portfolio... The receipt of advanced royalty payments and the upcoming additional share issuance from Magma Silver reinforces the strength of our broader asset base and provides meaningful non-dilutive exposure as we continue advancing Maria Norte." — Chris Verrico, President and CEO
• "Our focus remains on disciplined execution at Maria Norte, while maintaining strategic exposure to additional upside through royalties and equity positions that can generate value without shareholder dilution." — Chris Verrico, President and CEO