RIO2 Provides Mine Construction and Corporate Update
CONSTRUCTION UPDATE
Construction highlights for the nine months from October 1, 2024, to June 30, 2025, are as follows, with all amounts expressed in US dollars:
Health & Safety – A total of 1,270,141 person-hours have been worked on the Project to date, with one Lost Time Incident for a finger injury, resulting in a Lost Time Incident Frequency Rate (LTIFR) of 0.79. The Total Incident Frequency Rate (TIFR) for the Project as of June 30, 2025, was 6.30.
Budget – Total spend to date since October 2024 of $56.4 million for works completed, vs budget of $57.8 million. These costs exclude corporate overheads and do not include pre-construction costs expended in 2022.
Schedule – Total Project is currently 41% complete, and we expect to achieve first gold production in January 2026. All long lead time procurement items are in hand.
Construction Progress
As of the end of the month, 12.7 hectares of geosynthetics have been installed at the leach pad. This area guarantees a leach pad for the first six months of production capacity.
Completed the placement of 4 hectares of overliner material on the leach pad, ready to receive mineral in August 2025.
Haul Road 1, construction progress has reached 90%, while Haul Road 4 stands at 40% completion. Both haul roads connect the Fenix South pit to the leach pad and are essential for the commencement of operations.
At the ADR Plant, ongoing work focused on the adsorption area, reagent handling facilities, and chemical reagent storage. The structural assembly of the plant building is now complete, and building cladding is 90% finished.
The first of three electrical switch rooms is currently being transported from the city of Santiago to the Project site.
Human Resources – a total of 1,514 personnel (including contractors) are currently employed at the Project. 94% of the workforce is comprised of Chileans, with 41% of the workforce from the Atacama Region, 10% of the workforce is female.
Exploration – Grade control drilling activities are nearing completion, focused on the pit areas covering the first three years of future mine production. This drilling program is planned to finish by the end of July, and the MRE update/reconciliation for mineral within the grade control drilling area is expected to be released by the end of September. This new information will be useful for mine planning and scheduling of the initial three years of production from the Fenix Gold mine.
Virtual Site Imagery and Photos
Updated 360-degree photography showing construction progress is available at the Company's website at:
https://app2.ricoh360.com/viewer/d3183f9d-ff6b-47d1-85a5-c7781e4601f1
A progressive photographic history of construction activities and grade control drilling is available at:
https://www.rio2.com/media/photos
Timetable and Next Steps
Upcoming key milestones at the Fenix Gold mine include:
CORPORATE NEWS
Conditional Approval to Graduate to the TSX
Rio2 also announces that it has received conditional approval from the Toronto Stock Exchange (the 'TSX') to graduate from the TSX Venture Exchange (the 'TSXV') and to list its common shares on the TSX. Final approval of the listing is subject to the Company meeting certain customary conditions required by the TSX. Rio2 is working diligently to satisfy such listing conditions, and further details and a timeline for graduation will be announced in due course. Upon receipt of the final approval from the TSX, Rio2's common shares will commence trading on the TSX and be delisted from the TSXV. Shareholders are not required to exchange their share certificates or take any other action in connection with the TSX listing, as there will be no change in the trading symbol or CUSIP for the common shares.
2024 ESG Report
Rio2 also announces the publication of its 2024 ESG Report. This report represents a comprehensive review of the Environmental, Social, and Governance factors related to Rio2's development activities at its Fenix Gold Project in Chile for the year 2024.
Rio2 is committed to the principles of responsible mining and best practices in corporate governance.
The complete report is available at:
https://www.onyen.com/published/RIO_2024_Annual_813.html
FENIX GOLD PROJECT
The Fenix Gold Project is one of the largest undeveloped gold oxide, heap leach projects in the Americas, hosting a Measured and Indicated mineral resource (as such term is defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects, 'NI 43-101') of 4.8 million ounces of gold which the Company believes will make a positive contribution to the Atacama Region and Chile. The Project is an example of modern gold mining where a full complement of technical, environmental, and social considerations has been consulted and designed from the outset. The Project represents a significant investment in the gold mining business in Chile by a junior mining company of approximately US$235M of initial and sustaining capital, generating employment for at least 1,200 people during the construction phase and 800 people during the 17-year operations phase. The mine being contemplated will be a run-of-mine heap leach operation; no crushing or tailings storage facilities are required, thereby minimizing the overall impact and footprint of the Project.
The scientific and technical content of this news release has been reviewed, approved and verified by Enrique Garay, MSc P.Geo/FAIG, who is a qualified person under NI 43-101. For additional information regarding the Project, including key parameters, assumptions and risks associated with its development, see the independent technical report entitled 'NI 43-101 Technical Report on the Feasibility Study for the Fenix Gold Project' (the 'Feasibility Study') pursuant to National Instrument 43-101 Standards of Disclosure for Mineral Projects ('NI 43-101'). The Feasibility Study is dated October 16, 2023, with an effective date of October 16, 2023, a copy of which document is available under Rio2's SEDAR+ profile at
www.sedarplus.ca
.
ABOUT RIO2 LIMITED
Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as successful capital markets track record. Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy. Rio2 and its wholly owned subsidiary, Fenix Gold Limitada, are companies with the highest environmental standards and responsibility with the firm conviction that it is possible to develop mining projects that respect the three pillars (Social, Environment, Economics) of responsible development. As related companies, we reaffirm our commitment to apply environmental standards beyond those that are mandated by regulators, seeking to protect and preserve the environment of the territories that we operate in.
Forward-Looking
Statements
This news release contains forward-looking statements and forward-looking information (collectively 'forward-looking information') within the meaning of applicable securities laws relating to Rio2's development of the Fenix Gold Project and other aspects of Rio2's future operations and plans. In addition, without limiting the generality of the foregoing, this news release contains forward-looking information pertaining to the following: The development of a mine at the Project, related construction activities and the expected timeline for completion of key construction milestones; the expected capital required for such mine; the expected timing of the first pour of gold; estimated indicated and measured gold resources; expected mine life; development and operating plans and expenditures; certain anticipated economic benefits of a mine at the Project to the local region; the timing of the completion of grade control drilling and the release of associated results; the graduation of the Company to TSX and its ability to satisfy listing conditions; and other matters ancillary or incidental to the foregoing.
All statements included herein, other than statements of historical fact, may be forward-looking information and such information involves various risks and uncertainties. Forward-looking information is often, but not always, identified by the use of words such as 'seek', 'anticipate', 'plan', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'predict', 'potential', 'targeting', 'intend', 'could', 'might', 'should', 'believe' and similar expressions. The forward-looking information is based on certain key expectations and assumptions made by Rio2's management, including but not limited to: expectations concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; legislative and regulatory environment of Chile; future mining and production rates and estimates of capital and operating costs; expectations regarding the availability of debt financing; estimates of reserves and resources; anticipated timing and results of capital expenditures; the sufficiency of capital expenditures in carrying out planned activities; results of operations; performance; the anticipated timing and results of expansion studies and related approvals; the availability and cost of financing, labor and services; and Rio2's ability to access capital on satisfactory terms.
Rio2 believes the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements in this news release should not be unduly relied upon. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Rio2's disclosure documents on the SEDAR+ website at
www.sedarplus.ca
. These risks and uncertainties include but are not limited to: risks and uncertainties relating to the completion of debt and equity financing for the construction phase of the mine, market conditions and management's ability to anticipate and manage the factors and risks referred to herein.
Forward-looking statements included in this news release are made as of the date of this news release and such information should not be relied upon as representing its views as of any date subsequent to the date of this news release. Rio2 has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. Rio2 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
To learn more about Rio2 Limited, please visit:
www.rio2.com
or Rio2's SEDAR+ profile at
www.sedarplus.ca
.
ON BEHALF OF THE BOARD OF RIO2 LIMITED
Alex Black
Executive Chairman of the Board
Email:
alex.black@rio2.com
Tel: +51 99279 4655
Kathryn Johnson
Executive Vice President, CFO & Corporate Secretary
Email:
Kathryn.johnson@rio2.com
Tel: +1 604 762 4720
Neither 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.
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Additional factors are discussed elsewhere in this press release and under the headings "Liquidity and capital resources" and 'Risks and Uncertainties' in DCM's Management Discussion and Analysis and in DCM's other publicly available disclosure documents, as filed by DCM on SEDAR+. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements. NON-IFRS ACCOUNTING STANDARDS MEASURES NON-IFRS ACCOUNTING STANDARDS AND OTHER FINANCIAL MEASURES This press release includes certain non-IFRS Accounting Standards measures, ratios and other financial measures as supplementary information. This supplementary information does not represent earnings measures recognized by IFRS Accounting Standards and does not have any standardized meanings prescribed by IFRS Accounting Standards. Therefore, these non-IFRS Accounting Standards measures, ratios and other financial measures are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that this supplementary information should not be construed as alternatives to net income (loss) determined in accordance with IFRS Accounting Standards as an indicator of DCM's performance. Definitions of such supplementary information, together with a reconciliation of net income (loss) to such supplementary financial measures, can be found in our most recent annual and interim Management Discussion and Analysis and filed on SEDAR+ at Condensed interim consolidated statements of operations (in thousands of Canadian dollars, except per share amounts, unaudited) For the three months ended June 30, 2025 For the three months ended June 30, 2024 For the six months ended June 30, 2025 For the six months ended June 30, 2024 Revenues $ 113,794 $ 125,751 $ 237,469 $ 255,005 Cost of revenues 83,286 91,417 170,701 183,360 Gross profit 30,508 34,334 66,768 71,645 Expenses Selling, commissions and expenses 9,649 10,178 20,609 21,042 General and administration expenses 10,222 12,295 22,721 25,566 Research & development expenses 1,216 1,391 2,336 2,638 Restructuring expenses 58 1,101 58 2,186 Acquisition and integration costs — 243 — 526 Net fair value losses (gains) on financial liabilities at fair value through profit or loss 179 (1,407 ) 298 1,807 21,324 23,801 46,022 53,765 Income before finance costs and income taxes 9,184 10,533 20,746 17,880 Finance costs Interest expense on long term debt and pensions, net 1,837 2,307 3,708 4,805 Interest expense on lease liabilities 3,283 3,059 6,560 6,114 Amortization of transaction costs 131 140 271 280 Debt modification gain (867 ) — (867 ) — 4,384 5,506 9,672 11,199 Income before income taxes 4,800 5,027 11,074 6,681 Income tax expense Current 1,445 16 3,516 1,358 Deferred (359 ) 947 (1,270 ) (216 ) 1,086 963 2,246 1,142 Net income for the period $ 3,714 $ 4,064 $ 8,828 $ 5,539 Other comprehensive income: Foreign currency translation (110 ) 14 (115 ) 44 (110 ) 14 (115 ) 44 Items that will not be reclassified to net income Re-measurements of pension and other post-employment benefit obligations s 1,816 1,755 1,431 8,768 Taxes related to pension and other post-employment benefit adjustment above (461 ) (406 ) (363 ) (2,248 ) 1,355 1,349 1,068 6,520 Other comprehensive income for the period, net of tax $ 1,245 $ 1,363 $ 953 $ 6,564 Comprehensive income for the period $ 4,959 $ 5,427 $ 9,781 $ 12,103 Basic earnings per share 0.07 0.07 0.16 0.10 Diluted earnings per share 0.06 0.07 0.15 0.10 Expand Condensed interim consolidated statements of cash flows (in thousands of Canadian dollars, unaudited) For the six months ended June 30, 2025 For the six months ended June 30, 2024 $ $ Cash provided by Operating activities Net income for the period $ 8,828 $ 5,539 Items not affecting cash Depreciation of property, plant, and equipment 3,514 3,306 Amortization of intangible assets 709 1,034 Depreciation of right-of-use-assets 9,831 8,814 Share-based compensation expense 89 321 Net fair value losses on financial liabilities at fair value through profit or loss 298 1,807 Pension expense 742 943 Gain on disposal of sale and leaseback — (11 ) Loss on disposal of property, plant and equipment — 149 Provisions 58 2,186 Debt modification gain (867 ) — Amortization of transaction costs 271 280 Accretion of asset retirement obligations 54 65 Other post-employment benefit plan expense 87 298 Right-of-use assets impairment — 97 Income tax expense 2,246 1,142 Changes in non cash working capital (12,173 ) 764 Contributions made to pension plans (675 ) (604 ) Contributions made to other post-employment benefit plans (189 ) (115 ) Provisions paid (5,460 ) (6,526 ) Income taxes paid (1,448 ) (1,599 ) Total cash generated from operating activities 5,915 17,890 Investing activities Proceeds on sale and leaseback transaction 6,694 8,661 Purchase of property, plant, and equipment (2,536 ) (6,989 ) Purchase of intangible assets (23 ) — Purchase of non-current assets (143 ) (6,499 ) Proceeds on disposal of property, plant, and equipment — 431 Total cash provided by (used in) investing activities 3,992 (4,396 ) Financing activities Exercise of options — 337 Proceeds from credit facilities 53,733 30,185 Repayment of credit facilities (48,054 ) (43,726 ) Decrease in bank overdrafts (880 ) (1,564 ) Transaction costs (417 ) — Dividends paid (13,829 ) — Principal portion of lease payments (4,005 ) (3,500 ) Repurchases of shares (213 ) — Total cash (used in) financing activities (13,665 ) (18,268 ) Change in cash and cash equivalents during the period (3,758 ) (4,774 ) Cash and cash equivalents – beginning of period 6,773 17,652 Effects of foreign exchange on cash balances (128 ) 51 Cash and cash equivalents – end of period $ 2,887 $ 12,929 Expand
Business Wire
3 hours ago
- Business Wire
Cresco Labs Announces Commitments to Refinance its Senior Secured Credit Facility
CHICAGO--(BUSINESS WIRE)--Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (' Cresco Labs ' or the ' Company '), today announced that it has successfully obtained commitments to refinance its senior secured credit facility (the 'Senior Loan'). The refinancing, upon closing, will provide for a new senior secured term loan totaling US$325 million, bearing an interest rate of 12.5% per annum, and maturing on the 5 th year anniversary of the closing of the refinancing. The new facility will replace the Company's existing US$360 million credit facility, providing enhanced financial flexibility and favorable terms, including provisions that will allow for the prepayment of up to US$125 million at a reduced prepayment premium. The refinancing comes at a time when access to capital remains highly constrained across the U.S. cannabis sector. With an estimated $2 billion in industry debt maturities coming due over the next 18 months, Cresco Labs' ability to refinance its credit facility underscores the resilience of its business model and enables it to execute on its multi-year growth plan. 'Securing this refinancing is a testament to the strength of our business and the trust we've built with top-tier institutional lenders,' said Charlie Bachtell, CEO of Cresco Labs. 'In an environment where capital is scarce, Cresco stands out. We've extended our maturity, improved our balance sheet position, and done so without dilution. This positions us to play offense instead of focusing on refinancing risk. It's a strategic win in a capital-constrained market.' Proceeds from the new facility, together with cash on hand, will be used to repay in full the existing term loan, fund capital expenditures, and support targeted growth initiatives across Cresco's core U.S. markets. The refinancing was negotiated at arm's length and includes customary financial and operational covenants. The facility contains no equity or convertible features. A.G.P. Canada Investments ULC and Cormark Securities Inc. acted as lead financial advisors and lead arrangers on the transaction. The lead lenders were advised by Paul Hastings LLP. The refinancing is expected to close on or about August 13, 2025, subject to customary closing conditions. About Cresco Labs Inc. Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production, and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's, and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development, and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs' journey by visiting or following the Company on Facebook, X or LinkedIn. Forward-Looking Statements This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, 'forward-looking statements'). Such forward-looking statements are not representative of historical facts or information or current condition but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as, 'may,' 'will,' 'should,' 'could,' 'would,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'projects,' 'predicts,' 'potential,' or 'continue,' or the negative of those forms or other comparable terms and in this press release includes statements relating to, among other things: the timing and ability to close the refinancing, including satisfying all conditions precedent in the commitment letter; any prepayments under the new facility; access to capital; the Company executing on its multi-year growth plan; and the anticipated use of proceeds from the new facility. The Company's forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR, other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company's forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs' shares, nor as to the Company's financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company's forward-looking statements contained herein, whether as a result of new information, any future event, or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.
