Rio2. MPSF Acquisition

1.      Deal Description

Guerrero Olivos represented Canadian listed mining company, Rio2 Limited and Rio2 S.A.C., in the acquisition of local mining company, Compañía Minera Paso San Francisco S.A. (“MPSF”).

MPSF owns strategic mining infrastructure and facilities located adjacent to Rio2’s Fenix Gold Project in Chile.

The acquisition was valued in USD1.5 million and brings several strategic benefits to Rio2 and its optimization plans for the development of its nearby Fenix Gold Project, currently guided to commence construction in Q4 2021 which is valued in more than USD100 million.

Complexity to this transaction was the need to negotiate and solve relevant and complex issues in connection with the guarantee of the closure plan of mining Company Compañía Minera Paso San Francisco S.A., and also to negotiate and execute the agreements during the COVID-19 locakdown 

The work included an intense due diligence process, which included water law, mining property, electric easements, environmental issues, regulatory matters and multiple permits, among others.

In addition, it is important to note that Inversiones Alxar S.A., a subsidiary of Empresas Copec S.A., a large Chilean industrial conglomerate, owned MPSF.

2.      Counsel list

Counsel to Rio2 Limited and Rio2 S.A.C.: Guerrero Olivos

Partners: Pedro Lyon and Benjamín Pérez [email protected]

Associates: Magdalena Urquidi and Jerónimo Zabala

Counsel to Inversiones Alxar S.A. and  Minera Camino Nevado Limitada: Portaluppi, Guzmán y Bezanilla

Partner Juan Francisco Guzmán

Alxar S.A.’s Corporate Affairs Counsel: Silvia Baeza

3.      Date of closing


4.      Deal Value

Acquisition: USD1.5 million. Gold Project: valued in more than USD100 million

5.      Jurisdictions involved

Chile and Canada