Royal Road Minerals and Rio2 Expand Partnership with Major Share Acquisition

Royal Road Minerals Limited (TSXV: RYR, OTCQB: RRDMF) and Rio2 Limited (TSX: RIO, OTCQX: RIOFF, ASX: RIO) have taken a notable step in deepening their business relationship. Rio2 has acquired 39,855,000 ordinary shares of Royal Road, representing roughly 15% of Royal Road’s outstanding shares. This transaction took place as a block trade on the TSX Venture Exchange, with Rio2 paying $4.58 million at $0.115 per share. The deal shifted a significant stake previously held by a single investor to Rio2 and various institutional buyers, marking Rio2’s entrance as an insider shareholder under securities regulations. 

This transaction introduces new dynamics in the mineral exploration and development sector, bringing together Rio2’s operational experience with Royal Road’s growing portfolio of exploration projects. Royal Road, headquartered in Jersey, Channel Islands, focuses its efforts on discovering and advancing copper and gold deposits. Their current exploration footprint spans Colombia, Saudi Arabia, and Morocco, with key assets like the Lalla Aziza copper project in Morocco, the Jabal Sahabiyah gold-polymetallic projects in Saudi Arabia, and properties across Colombia. 

Tim Coughlin, Royal Road’s President and CEO, expressed enthusiasm about welcoming Rio2 and its leadership team. He highlighted Rio2’s track record in developing prominent gold projects and emphasized this partnership’s benefits at what he called an opportune time for both companies. The shared vision and strategic approach appear closely aligned, setting the stage for mutual growth and enhanced project advancement. 

From Rio2’s standpoint, Executive Chairman Alex Black noted a long-standing relationship with Tim Coughlin, praising his skills as a geologist and his pioneering role in regions like Colombia and Saudi Arabia. Rio2 sees Royal Road’s portfolio as attractively positioned for future diversification, particularly in promising new jurisdictions. While Rio2 maintains a strong focus on advancing its flagship Fenix Gold Mine in Chile, this acquisition underscores their interest in exploration optionality and growth beyond current operations. 

The Fenix Gold Project, Rio2’s main development endeavor, is located in Chile’s Atacama Region. The project is progressing toward production with a staged development strategy aiming for initial gold output by early 2026. Notably, Rio2 has recently engaged with local infrastructure providers to explore the potential supply of desalinated water to the mine, a move that could set a precedent for sustainable mining in the region by transporting desalinated water from coastal areas to a high-altitude mine. This initiative, now in the study phase, is part of Rio2’s broader environmental and social responsibility commitment as they look to expand the project over coming years. 

As part of the share acquisition, Rio2 and Royal Road have entered into an Investor Rights Agreement. This agreement grants Rio2 participation rights in future equity financings to maintain its ownership percentage, up to 15%. Additionally, Rio2 gains the right to nominate a director to Royal Road’s board, provided it holds a minimum 9.5% stake. Rio2’s acquisition was purely for investment purposes, with the possibility to buy or sell shares in Royal Road later, subject to the agreement terms. 

Royal Road Minerals is dedicated to exploring minerals with an eye on minimizing environmental impacts and preserving biodiversity. Their strategy is to focus on quality copper and gold opportunities large enough to make a generational difference while adhering to modern standards of sustainable development. Working in jurisdictions such as Saudi Arabia, Colombia, and Morocco involves geopolitical and ecological complexities, but their approach aims to responsibly manage those risks while unlocking significant mineral potential. 

Rio2 Limited, meanwhile, emphasizes responsible development alongside its mining operations. Its Chilean subsidiary, Fenix Gold Limitada, practices environmental standards that exceed regulatory requirements. Rio2’s commitment to social, environmental, and economic pillars of responsible mining serves as an important foundation for its future growth. The company’s focus remains on transforming the Fenix Gold Mine into a productive and sustainable asset in the near term. 

This new investment signals a significant shift for Royal Road Minerals, gaining a robust institutional shareholder with proven capabilities in project development. Rio2’s entry as an insider and board participant may enhance Royal Road’s prospects for funding and operational expertise, benefiting both entities as they pursue exploration and development milestones in multiple countries. The collaboration suggests that Rio2 is looking beyond its core Chilean project, seeking optionality and growth potential in emerging mineral venues offered by Royal Road’s portfolio.

As the mining sector faces increasing demand for responsible sourcing and sustainable exploration practices, partnerships like this could become more common. Industry players aiming to balance growth with environmental stewardship may find value in aligning strategic investments with shared values and complementary objectives. Royal Road and Rio2’s recent transaction is a clear example of such alignment in practice.