Rio Silver

Corporate Profile

Rio Silver has recently entered the prolific Hauchocolpa mining district,  department of Huancavelica by purchasing the  high-grade, silver dominant Maria Norte project in an area renowned for its ability to foster low capex mining start-ups, due to the very nature of Maria Norte’s intact and previously undeveloped subvertical geology, in a district that has produced numerous long life mines, and the very place that Buenaventura, a US$4 Billion Peruvian based company was founded +70 years ago. Lying within 11 km’s of 2 major processing plants that are being supplied by numerous surrounding mines, Maria Norte is also just 2.5 Km’s from a recently published positive Preliminary Economic Assessment, “PEA”,  summing the potential for a future 2500 t/day plant based on a resource that is directly on strike with the kilometers of veins sampled at Maria Norte and where the processing metallurgy is well understood due to the near proximity of numerous producing mines.

The recent announcement by Endeavour Silver, a Vancouver based $1.6 Billion Silver producer, for the purchase of Kolpa and its 1440 t/day plant, which is sited some11 Km’s from Maria Norte, proclaims that the additional 5 million ounces of annual attributable silver production from the Minera Kolpa purchase will launch them into and amongst the ranks of the senior global silver producers.

The Company feels that the purchase of Maria Norte represents a transformational pivot towards sustainability, allowing for less dependance on capital markets which have typically overlooked this sector, and fostering the organic growth necessary to build a sustainable enterprise.

Royalty Stream  – The Company has recently negotiated a second valuable royalty stream.  The first, a 3 percent NSR (Net Smelter Return) royalty income stream, capped at $2 million, from the sale of its interest in the Palta Dorada Au Ag Cu project where development capital has recently been secured by Peruvian Metals Corp. who owns a nearby toll milling process plant and provides the Company with a guaranteed minimum royalty payment for 5 years.

A second 2% royalty stream, derived from the sale of its Ninobamba project, where 1% can be bought for US$1 million, along with an escalating cash payment schedule and guaranteed annual minimum royalty payments over the next 5 years, all together provides the company with sustaining and development capital to better execute its mandate for increasing shareholder value.