- Eric Sprott added 5,128,500 shares for C$2,000,115 to his position in Rio2 (TSXV:RIO), a junior mining stock developing its Fenix gold project in Chile
- The 6.6-million-ounce project is slated to begin production in Q3 2025
- Rio2 is a mining company backed by a management team with proven project development and capital markets track records
- While Rio2 stock has added 111.36 per cent year-over-year, it remains down by about 67 per cent since acquiring Fenix in 2018
Eric Sprott added 5,128,500 shares for C$2,000,115 to his position in Rio2 (TSXV:RIO), a junior mining stock developing its Fenix gold project in Chile.
Prior to the acquisition, he owned 25,933,371 shares representing 10 per cent of outstanding shares on a non-diluted basis. After the acquisition, and combined with previous treasury issuances, he now owns 31,061,871 shares representing 9.8 per cent of outstanding shares on a non-diluted basis.
The private placement was executed on April 17 through 2176423 Ontario Ltd., a corporation Sprott beneficially owns.
By falling bellow the 10 per cent threshold, Sprott and 2176423 Ontario Ltd. have lost insider status at Rio2.
Why is Eric Sprott invested in this junior gold stock?
Rio2 makes for a prospective stock thanks to its Fenix gold project, which is identified as the largest undeveloped gold heap-leach project in the Americas – at an estimated 1.8 million ounces of gold (oz Au) proven and probable and 4.8 million oz Au measured and indicated – in the company’s investor presentation for April 2024. The proven and probable reserve uses US$1,650 per oz Au as a base case, which is 42.7 per cent higher than the US$2,356.10 price as of 7:56 am ET Monday.
This robust ounce count, at such a low estimated gold price, makes the open-pit, heap-leach operation a compelling value proposition, given the mining industry lifers on Rio2’s leadership team affording it a fair chance at delivering on these numbers.
The junior gold stock is well-funded with C$25.3 million in cash, and benefits from support from high net-worth (13 per cent), insider (11 per cent) and institutional (23 per cent) investors, as it progresses towards first gold production at Fenix in Q3 2025.
“With the recently completed financing, Rio2 is now well-funded to complete project permitting and secure construction financing targeted for September of this year,” Andrew Cox, Rio2’s president and chief executive officer, said in a statement.
While Rio2 stock has added 111.36 per cent year-over-year, reflecting Fenix’s attractive economics, it remains down by about 67 per cent since first acquiring the project in 2018.
About Rio2
Rio2 is a junior mining stock focused on bringing its Fenix gold project in Chile to production. Fenix is one of the largest gold oxide resources in the world.
Rio2 stock (TSXV:RIO) last traded at C$0.46 per share.
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