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Financings

Rio2 Completes Acquisition of the Condestable Mine

Rio2 completes aggressive metamorphosis into multi-asset producer with Condestable closing

By The Northwire Desk — AI Analysis Jan 30, 2026 · 11:04 RIO · 3.79 Rio2 Limited
Executive Summary

On January 30, 2026, Rio2 Limited announced the formal closing of the Condestable Mine acquisition in Peru from Southern Peaks Mining. This follows the January 26 announcement of the first gold pour at the company’s Fenix Gold Mine in Chile. Key components of the most recent news include: - Completion of 99.1% interest acquisition for $55 million USD in cash and $65 million USD in vendor financing (promissory notes). - Target annual production at Condestable is set at 27,000 tonnes of copper equivalent. - Integration period of approximately six months to rationalize management and operations. - Closing of a massive C$191.1 million equity financing at C$2.22 per share to fund the cash portion and working capital.

Material Impact

The impact is classified as a Game Changer because it marks the final transition of Rio2 from a developer to a mid-tier producer with two cornerstone assets in two different jurisdictions. - Operational Transformation: The company has shifted from zero revenue to having a producing copper mine (Condestable) and a ramping-up gold mine (Fenix) within the same week. - Financial Scale: Pro forma projections provided in historical news suggest an annual EBITDA potential of $330 million USD at spot prices. - Dilution Reality: The company issued over 92 million shares in December/January (Subscription receipts and private placements) plus 21.9 million shares to the vendor. While the price of the financing (C$2.22) was significantly higher than historical levels, the sheer volume of new paper will test market liquidity. - Debt Load: The company is assuming $65 million USD in new debt ($55M senior, $10M mezzanine) with 6-year terms. This is in addition to the $91.9 million in deferred revenue (stream obligations) to Wheaton Precious Metals.

RIO · Price
Company Overview

Rio2 Limited is now a diversified Latin American miner. - Flagship Project (Chile): Fenix Gold Mine. A 100%-owned heap leach project. Measured and Indicated resources of 4.8 million oz Au. Recently poured first gold. - Secondary Asset (Peru): Condestable Mine. A 99.1% owned copper-gold-silver producer. Established infrastructure with a 10-year reserve life.

Read the original news release →

More from Rio2 Limited

Jun 23, 2026 · 08:00

Rio2’s Condestable reserve update confirms a 14-year mine life and sub-$1.50 AISC, though tonnage drawdown limits expansion potential.

Resource Estimate May 15, 2026 · 22:35

Rio2’s maiden production marred by cost overruns and operational hiccups, casting a shadow over ambitious growth targets.

Earnings Apr 22, 2026 · 08:00

Rio2 Condestable Integration On Track Despite Valuation Correction

Production / Operations Apr 01, 2026 · 18:57

Rio2 pays down Condestable debt by $20-million (U.S.)

Management Apr 01, 2026 · 08:00

Rio2 transitions from developer to producer while aggressively deleveraging its new copper-gold portfolio.

Financings Jan 30, 2026 · 17:07

Rio2 completes acquisition of Condestable mine

Financings