VANCOUVER, British Columbia, April 01, 2026 (GLOBE NEWSWIRE) -- Rio Silver Inc. ("Rio Silver" or the "Company") (TSX-V: RYO | OTC: RYOOF) is pleased to announce that it has received the first US$100,000 advanced royalty payment from Magma Silver Corp. pursuant to the previously announced option agreement on its Niñobamba gold-silver property in Peru.
Under the terms of the option agreement, Magma Silver has the right to earn a 100% interest in the Niñobamba project upon full exercise of the option. The agreement provides for total payments of $260,000, which have been received, and additional milestone payments of up to US$2,000,000, including US$500,000 in advanced royalty payments to be paid over the next five years. The initial US$100,000 payment received will be credited against a 2% net smelter return ("NSR") royalty retained by Rio Silver.
Magma Silver retains the right to repurchase 1% of the NSR for US$1,000,000 at any time prior to commercial production.
In addition, Rio Silver confirms that it has previously received 2,500,000 common shares of Magma Silver Corp., and will receive a further 2,500,000 common shares on April 15, 2026, pursuant to the terms of the agreement.
Management Commentary:
"This is an important milestone for Rio Silver as we begin to realize value from our royalty portfolio," said Chris Verrico, President and Chief Executive Officer of Rio Silver. "The receipt of advanced royalty payments and the upcoming additional share issuance from Magma Silver reinforces the strength of our broader asset base and provides meaningful non-dilutive exposure as we continue advancing Maria Norte."
"Our focus remains on disciplined execution at Maria Norte, while maintaining strategic exposure to additional upside through royalties and equity positions that can generate value without shareholder dilution."
Why This Matters to Investors
This milestone demonstrates that Rio Silver is not solely an exploration or development-stage company, but one that is actively generating revenue through its royalty interests. The receipt of advanced royalty payments provides immediate non-dilutive capital, while the retained 2% NSR royalty and equity position in Magma Silver offer ongoing exposure to future production and asset appreciation.
The upcoming issuance of an additional 2.5 million shares in Magma Silver further strengthens Rio Silver's balance sheet and provides continued leverage to exploration success and development progress at Niñobamba. Together, these elements enhance financial flexibility and support the Company's capital-efficient approach to advancing its core silver-dominant assets.
Additional Corporate Update
The Company also announces that it has granted an aggregate of 1,620,000 stock options pursuant to its stock option plan. The options are exercisable at a price of $0.43 per common share.
• 800,000 options have been granted to directors and officers of the Company, expiring on March 31, 2031
• 820,000 options have been granted to consultants of the Company, expiring on March 31, 2028
The options vest in accordance with the Company's stock option plan and are subject to acceptance by the TSX Venture Exchange.
About Rio Silver Inc.
Rio Silver Inc. (TSX-V: RYO | OTC: RYOOF) is a Canadian resource company advancing high-grade, silver-dominant assets in Peru, the world's second-largest silver producer. The Company is focused on near-term development opportunities within proven mineral belts and is supported by a seasoned technical and operational team with deep experience in Peruvian geology, underground mining, and district-scale exploration. With a clear development strategy and a growing portfolio of highly prospective silver assets, Rio Silver is establishing the foundation to become one of Peru's next emerging silver producers.
Learn more at www.riosilverinc.com
Stay Connected with Rio Silver
Investors and stakeholders are encouraged to follow Rio Silver for the latest company updates, project milestones, and event announcements across the Company's official social media channels:
- X (formerly Twitter)
- YouTube
- Facebook
By following Rio Silver's official channels, investors can stay informed as the Company advances its silver-dominant projects and executes on key development milestones.
ON BEHALF OF RIO SILVER INC.
Chris Verrico
Director, President and Chief Executive Officer
To learn more or engage directly with the Company, please contact:
Christopher Verrico, President and CEO
Tel: (604) 762-4448
Email: chris.verrico@riosilverinc.com
Website: www.riosilverinc.com
Cautionary Note Regarding Forward-Looking Information
This news release contains certain "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements include, but are not limited to, statements regarding anticipated development activities, underground access timing, permitting progress, community engagement, metallurgical testing and processing strategies, planned exploration and technical programs, the Company's staged development approach, and the Company's ability to advance the Maria Norte Project toward potential production, cash flow, or other operational milestones.
Forward-looking statements are based on a number of assumptions that management believes to be reasonable at the time such statements are made, including assumptions regarding continued community cooperation, the receipt of required permits and approvals, favorable market conditions, the availability of financing, the results of metallurgical and technical studies, and the Company's ability to execute its development plans as currently contemplated. However, forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that could cause actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such statements.
Such risks and uncertainties include, without limitation, risks related to exploration and development activities, permitting and regulatory approvals, community relations, changes in commodity prices, availability of capital and financing, operational and technical challenges, environmental and social risks, and other risks described in the Company's public disclosure documents filed under the Company's profile on SEDAR+.
Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this news release are made as of the date hereof, and Rio Silver undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
