Canada's Rio2 has secured strong market backing for its planned acquisition of the Condestable copper mine in Peru, with the company increasing its previously announced bought-deal financing to C$166-million, only days after unveiling the transformative transaction.

The Vancouver-based miner announced on Monday that it had struck a definitive agreement to acquire Southern Peaks Mining’s 99.1% interest in the long-running Condestable operation for total consideration of $217-million, implying an enterprise value of about $241-million once net debt is included.

The deal marks Rio2’s shift from a single-asset gold developer into a diversified Latin American producer with immediate cash flow, copper exposure and a meaningful expansion pipeline.

Rio2 and its underwriting syndicate – led by Raymond James, Stifel and BMO – reported on Tuesday that the bought-deal financing originally set at C$140-million had been increased to C$166-million following “strong investor demand”.

Under the revised terms, the underwriters will purchase 74.865-million subscription receipts at C$2.22 each for gross proceeds of C$166.2-million. An over-allotment option of 15% remains in place.

All other terms of the financing remain unchanged, with proceeds earmarked to fund the $80-million cash component of the acquisition and general corporate purposes. Closing is expected on or around December 15, subject to customary TSX approvals.

TRANSFORMATIONAL ACQUISITION
Condestable, located 90 km south of Lima, is a mature 8 400 t/d underground copper mine producing clean concentrate and boasting more than 60 years of continuous operation. It is forecast to deliver about 27 000 t/y of copper-equivalent output (80 000 oz gold-equivalent) with further growth potential through a planned MEIA-based expansion to 10 000 t/d, and a conceptual 12 000 t/d scenario to be reviewed by Rio2 post-closing.

Rio2 executive chair Alex Black said the transaction marked “a major moment” in the company’s evolution, coming just weeks ahead of first production at its Fenix Gold project in Chile. Condestable’s cash flow, he noted, would underpin the development of both Fenix and Condestable’s own expansion options.

The transaction returns the Rio2 leadership team to familiar territory: Peru was the foundation of their earlier success with Rio Alto Mining. Condestable is Copper Mark certified, draws on 100% renewable power and maintains a strong social licence built over multiple decades.

Southern Peaks CEO Adolfo Vera said the sale represented “an exciting next chapter” for the mine, adding that the group’s ongoing financial participation reflected confidence in both the asset and Rio2’s growth strategy.