Rio2 Copper Acquisition Expands Peru Mining Footprint

Rio2 Copper Acquisition Strengthens Latin American Presence

Rio2 (TSX: RIO) acquired a 99.1% stake in the Condestable copper mine from Southern Peaks Mining for $241 million. This strategic purchase positions Rio2 as a diversified metals producer in Latin America. The deal expands its footprint beyond gold development. Rio2 paid $80 million in cash, $65 million in debt financing, $35 million in common shares, and will make a deferred $37 million payment between 2027 and 2030. The company also assumes $24 million of Condestable’s debt, giving it full control of the mine.

Located 90 km south of Lima, Condestable operates as a long-life underground copper mine. It processes 8,400 tonnes per day and produces clean copper concentrate without penalties. Rio2 plans to increase underground capacity to 12,000 tpd and develop open-pit operations. Analysts project the mine will generate $110 million in cash flow at consensus copper prices, supporting growth at Condestable and the Fenix gold project in Chile.

Strategic Implications of the Rio2 Copper Acquisition

Condestable strengthens Rio2’s portfolio by providing stable copper production during historically low copper-to-gold ratios. The combined operations could produce 180,000 ounces of gold equivalent annually and may reach 380,000 ounces with future expansions. Executive chairman Alex Black said Condestable delivers immediate cash flow to support Fenix Gold’s first production and broader growth plans. Rio2 president Andrew Cox highlighted the mine’s stability and expansion potential, reinforcing the company’s long-term value creation strategy.

SuperMetalPrice Commentary:

Rio2’s acquisition of Condestable reflects a strategic move to diversify revenue streams amid volatile gold and copper markets. By adding a cash-flowing copper asset alongside an imminent gold project, the company reduces commodity risk and positions for long-term growth. Investors should track Rio2’s financing and operational ramp-up, as these factors will influence market capitalization and expansion prospects.