Core Viewpoint - The acquisition of the Condestable mine positions Rio2 as a diversified Latin American gold miner with copper exposure, enhancing its growth potential and cash flow generation capabilities [1][3]. Acquisition Details - Rio2 has entered into a definitive agreement to acquire a 99.1% interest in the Condestable mine in Peru for a total consideration of US$217 million, which includes US$180 million upfront and US$37 million in deferred payments [2][9]. - The transaction implies an enterprise value of approximately US$241 million, factoring in the assumption of US$24 million in net debt as of September 30, 2025 [2][9]. Financial Implications - The acquisition is expected to generate average annual EBITDA of approximately US$110 million at consensus prices, supporting expansions at both the Fenix Gold and Condestable operations [4][9]. - Pro forma, Rio2 anticipates generating average annual EBITDA of approximately US$330 million following the acquisition [4]. Operational Highlights - Condestable is a well-established underground copper operation with a forecasted production of approximately 27,000 tonnes per annum (ktpa) of copper equivalent, translating to about 80,000 ounces (oz) on a gold equivalent basis [4][5]. - The mine has a reserve life of over ten years and is situated in a top-tier mining jurisdiction, complementing Rio2's existing operations in Chile [4][5]. Growth Potential - There is potential to expand underground mining capacity to 12,000 tonnes per day (tpd) and opportunities for open-pit development, which could significantly increase annual production [6][7]. - The Condestable mine is located within a highly prospective IOCG belt, with several high-quality exploration targets identified, supporting long-term resource growth [7][8]. Environmental and Social Governance (ESG) - Condestable operates using 100% renewable electricity and has a strong history of community engagement, reinforcing its social license to operate [8][9]. - The mine has received the Copper Mark certification, indicating adherence to responsible mining practices and contributions to sustainable development goals [9]. Financing Structure - Rio2 has arranged a financing package of approximately US$165 million to fund the acquisition, which includes vendor debt and equity financing [13][19]. - The equity financing involves a bought deal of C$140 million (approximately US$100 million) through the sale of subscription receipts [15][19]. Project Updates - The Fenix Gold Project is on track for first gold production in January 2026, with construction currently 80% complete [28]. - The company aims to ramp up production to 100,000 ounces of gold per annum by the end of 2026, with further expansion plans targeting a production rate of 80,000 tpd [28][29].