Rio2 Limited bought 10,000,000 ordinary shares of Royal Road Minerals Limited at $0.20 per share, for $2,000,000, taking part in a brokered LIFE offering by Royal Road that closed on July 28, 2026.
A LIFE offering uses the listed issuer financing exemption under Canadian securities rules, which lets a listed company sell freely tradeable shares to investors without filing a prospectus, subject to size limits.
After the placement, Rio2 said it has beneficial ownership, control and direction over 54,021,667 Royal Road shares, roughly 16.33% of the issued and outstanding shares on a non-diluted basis. Before the financing it held 44,021,667 shares, about 15%.
The purchase was made under an Investor Rights Agreement that Rio2 announced on September 29, 2025. According to Rio2, that agreement gives it the right to take part in Royal Road equity financings either to maintain its pro rata ownership at the time of the financing, or to acquire up to a 15% interest after giving effect to the financing, so long as Rio2 holds at least 9.5% of Royal Road as calculated under the agreement.
Rio2 stated the shares were acquired for investment purposes and that it may buy more securities of Royal Road, or sell some or all of what it holds, subject to the terms of the Investor Rights Agreement. The release gives no indication of any intention to acquire control.
The announcement accompanies the filing of an early warning report under National Instrument 62-103, the Canadian rule that requires disclosure once an investor crosses certain ownership thresholds in a reporting issuer and again on subsequent changes. The report is to be filed in each jurisdiction where Royal Road reports and will appear on SEDAR+ under both companies' profiles.
Rio2 disclosed neither the total size of Royal Road's brokered LIFE offering nor how much of it Rio2 took, so the release does not show what share of the financing came from Rio2 versus other buyers. It also does not state what Royal Road intends to do with the proceeds.
Rio2 trades on the TSX and BVL under RIO and on the OTCQX under RIOFF. The company produces gold at the Fenix Gold heap leach operation in Chile and copper, gold and silver at the Condestable underground mine in Peru, which it acquired recently. Earlier in July 2026 it filed technical reports for Condestable and for the Kalzas tungsten project in Yukon.
Source: GlobeNewswire
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