- Mogotes Metals (TSXV:MOG) closed on a C$21.27 million investment from Rio Tinto Canada, granting the major miner a 5 per cent stake in the company.
- Mogotes is a copper, gold and silver explorer advancing three porphyry projects with industry-leading potential.
- Mogotes Metals stock last traded at C$0.55 and has added 96.43 per cent year-over-year.
Mogotes Metals (TSXV:MOG) closed on a C$21.27 million investment from Rio Tinto Canada, granting the major miner a 5 per cent stake in the company.
The companies will now turn their attention to exploring Mogotes’ 100-square-kilometre Filo Sur project in Argentina and Chile under a formal technical alliance, which will benefit from Rio Tinto’s proprietary geochemistry and geophysics tools and multiple decades of experience in porphyry-based mining.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
The copper, silver and gold project, under a 100-per-cent option agreement, is located in the proven Vicuña porphyry district near several major projects, including NGEX Minerals’ Los Helados and Lunahuasi, as well as BHP and Lundin Mining’s Josemaria and Filo del Sol.
According to Thursday’s news release, Mogotes and Rio Tinto will evaluate the potential for extending their alliance into additional strategic mining regions.
Financing details
Mogotes issued 30,387,857 units priced at C$0.70, with each unit consisting of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one share for C$1 for 18 months from closing, representing potential additional proceeds of up to C$15.19 million.
Rio Tinto has a 15-month exclusivity period, extendable for six months, to match third-party proposals involving Filo Sur or its holding subsidiaries.
The major miner may also increase its stake to 9.9 per cent partially diluted during the exclusivity period, exercisable at the greater of the 20-day volume weighted average trading price and a 20 per cent premium to the closing price on the trading day prior to the new investment.
All securities issued are subject to a holding period of four months and one day from closing as required by Canadian securities laws.
Leadership commentary
“The completion of Rio Tinto’s strategic investment in Mogotes is a powerful endorsement of the prospectivity of Filo Sur and the broader Vicuña district. The alliance gives our team access to one of the deepest exploration capabilities in the industry while preserving Mogotes’ ability to deliver value to all shareholders,” Allen Sabet, Chief Executive Officer of Mogotes Metals, said in a statement.
About Mogotes Metals
Mogotes Metals is a junior copper, gold and silver miner advancing three porphyry projects with industry-leading potential. Besides Filo Sur, these include Beskauga, a resource-stage asset in Kazakhstan, and Copper Cliff, a gold and copper project in Montana optioned from Rio Tinto.
Mogotes Metals stock (TSXV:MOG) last traded at C$0.55 and has added 96.43 per cent year-over-year.
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