VANCOUVER, British Columbia, Jan. 15, 2024 (GLOBE NEWSWIRE) -- Rio Silver Inc. (TSXV:RYO) ("Rio Silver" or the "Company") is pleased to announce that the Company has sold its 50% interest in the Palta Dorada Property to Peruvian Metals Corp. ("Peruvian Metals"). The consideration for the sale is $250,000 US with the Company retaining a 3% Net Smelter Royalty ("NSR" or Royalty"). Total payments from the NSR will be capped at $2 million US while the Company is guaranteed $ 250,000 in minimum royalty payments over the next five years.
An initial payment of $25,000 US has been received and four monthly payments due of $25,000 USD with a final $125,000 US payment being received in June, 2024. The royalty payments will be paid semi-annually having a guaranteed minimum semi annual payment amount of $25,000 US over the next five year period starting December 2024. Cash flow from Palta Dorada, potentially generating larger semi-annual royalty payments to the Company, is expected late 2024 to early 2025 with the property being located near Peruvian Metals' Aguila Norte Processing Plant.
The Company is also pleased to announce significant progress towards gaining social license in order to facilitate a diamond drilling campaign at the Joramina zone forming the western flank of the Company's flagship, Niñobamba Au-Ag project in South Central Peru. The Company has assisted the communities in the area to reorganize their affairs allowing them to complete the necessary access agreements which will allow them to receive the benefits that successful exploration will generate.
Chris Verrico, Chief Executive Officer of Rio Silver commented: "The sale of our Palta Dorada interest to Peruvian Metals allows us to retain a significant NSR(Net Smelter Royalty) on the property and focus efforts on our Ninobamba area properties. Peruvian Metals is now able to fast track it's development augmenting Rio Silver's, highly valuable, 3% royalty stream. We also welcome the immediate cash payments over the next several months along with the guaranteed royalty payments to offset annual fixed costs. This cash will aid the Company to explore and develop our flagship Niñobamba Au-Ag project and pick up where Newmont had left off, internally concluding that Jorimina had significant potential, enough to support a robust midsized mining enterprise with significant upside potential. Our 100% unincumbered ownership of the Niñobamba/Jorimina properties will propel Rio Silver's advancement up and amongst Peru's most notable new precious metal discoveries."
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 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, and has been maintaining its interest in its Ontario Gerow Lake Property.
For further information on Rio Silver Inc. please visit www.riosilverinc.com.
Rio Silver Inc. is a Canadian resource company listed on the TSX Venture Exchange: Symbol "RYO"
For additional information, contact: Chris Verrico Tel: (604) 762-4448
Email: chris.verrico@riosilverinc.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
