Rio Tinto Canada Inc. has acquired a 5% equity stake in Mogotes Metals Inc. through a strategic investment valued at approximately $15 million, or C$21.3 million, at a subscription price of C$0.70 per unit.
The investment involves the subscription of 30,387,857 units, each comprising one common share and one-half of one warrant. The warrants, exercisable at C$1.00 per share for 18 months from closing, could generate up to C$15.2 million in additional proceeds if fully exercised. Concurrently, Mogotes issued an additional 7,970,945 units to investors exercising pre-emptive rights, raising a further C$5.6 million.
The agreement establishes a strategic and technical alliance centered on the Filo Sur project, located in the Vicuña district spanning Argentina and Chile. Rio Tinto secured a 15-month exclusivity period for the project, extendable by mutual consent for six additional months. During this period, Rio Tinto holds a right to match third-party proposals and a top-up right to acquire up to 9.99% of Mogotes' common shares on a partially diluted basis.
The top-up right exercise price is the greater of the 20-day volume weighted average trading price or a 20% premium to the closing price on the last trading day prior to exercise, subject to TSXV approval. The alliance includes the formation of a joint technical committee and the application of Rio Tinto's geoscience tools across the project.
All issued securities remain subject to a statutory hold period expiring four months and one day from the closing date.
