Mogotes Metals Inc. (MOG) has entered into a binding term sheet with Rio Tinto Exploration Canada Inc., securing a US$15 million strategic investment to advance exploration at the Filo Sur project. Under the agreement, the major will subscribe for approximately 30.4 million units of the company at a price of C$0.70 per unit. Each unit consists of one common share and one-half of one common share purchase warrant, with the warrants exercisable at C$1.00 for 18 months following the closing of the placement. This deal provides the company with a significant injection of capital, potentially raising an additional C$15.2 million if all warrants are exercised.

The investment is accompanied by a proposed strategic and technical alliance between the two entities. The partnership is designed to combine the local exploration team’s district knowledge with the global technical capabilities of the major. The alliance will include the formation of a joint technical committee, the deployment of proprietary geoscience tools, and collaborative efforts to expand the project’s land position. The company intends to utilize the proceeds from the financing to ramp up work programs at the project site located in the Vicuña district of Argentina and Chile.

"Rio Tinto's strategic investment in Mogotes is a powerful endorsement of the prospectivity of Filo Sur and the broader Vicuña district. The Alliance gives our team access to one of the deepest exploration capabilities in the industry while preserving Mogotes' ability to deliver value to all shareholders."

— Allen Sabet, President and Chief Executive Officer

The transaction represents a marked increase in valuation for the company compared to its earlier financings this year. The current placement price of C$0.70 per unit stands well above the C$0.265 per unit pricing seen in its February 2026 non-brokered private placement. Furthermore, the US$15 million investment marks a larger capital raise than the C$11.5 million bought deal offering completed in January 2026. These earlier capital-raising efforts were instrumental in maintaining the explorer's project activities, but this latest commitment from a global mining major provides a distinct strategic advantage as the company seeks to accelerate its exploration discovery efforts.

Beyond the immediate work at Filo Sur, the parties are currently negotiating definitive agreements that could extend their strategic collaboration to other highly prospective mineral belts. One specific area under consideration for future expansion is in Kazakhstan, where the companies aim to identify and explore additional project targets. The deal also grants the major a 15-month exclusivity period for the project, which can be extended by mutual agreement, along with rights to maintain its ownership percentage and a top-up right to acquire up to 9.99% of common shares on a partially diluted basis during the exclusivity window.

The closing of this transaction remains subject to customary conditions, including the receipt of necessary regulatory and stock exchange approvals. The company noted that it has existing investors with pre-emptive rights, and it may issue up to an additional 17 million units to accommodate these rights in full, ensuring the capital structure aligns with prior obligations while integrating the new strategic partner. Finalization of the long-form definitive agreements remains a key upcoming catalyst for the company as it transitions into this new phase of partnership-led exploration and development.

Read the full announcement: Mogotes Metals Announces US$15 Million Strategic Investment by Rio Tinto and Proposed Formation of Strategic & Technical Alliance