Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) today announces that it has arranged a mine construction financing package expected to total approximately US$150 million for construction and general working capital of the Company’s 100%-owned Fenix Gold Project in Chile (“Fenix Gold” or the “Project”).
This funding package marks a significant de-risking milestone for Fenix Gold, and with all key sectorial permits for construction now in hand, Rio2 is positioned to fully execute the development, ramp-up and operation of the Fenix Gold mine.
The total financing package is comprised of the following:
- US$120 million financing package (the “Wheaton Financing”) with Wheaton Precious Metals International Ltd. (“Wheaton”);
- Overnight marketed public offering of common shares of the Company (“Common Shares”) to raise gross proceeds of up to C$40 million led by Raymond James Ltd. and Eight Capital (the “Public Offering”); and
- Non-brokered private placement of Common Shares to Wheaton for proceeds of C$5 million (the “Wheaton Private Placement”).
Alex Black, Executive Chairman of Rio2, commented: “This financing package is the result of a competitive and comprehensive process undertaken by the Company, with the assistance of Endeavour Financial as its advisor, to secure the optimal financing solution for the construction of our Fenix Gold mine. Wheaton’s expanding commitment to us validates the quality of our Fenix project, and their continued backing as a cornerstone financial partner, in addition to the support of our shareholders, has put Rio2 in a position of certainty to fund Fenix to production. We are highly excited to advance construction in a responsible manner, build the next gold mine in Chile, and generate material value for all Rio2 stakeholders.”
Randy Smallwood, President and CEO of Wheaton, commented: “We are excited to continue our support of Rio2 and Fenix with this project financing package. Fenix is a highly attractive, scalable gold project located in a well-known mining jurisdiction. Alex and his team have a strong track-record of success building and operating world-class mining operations in South America, and our continued investment in Rio2 and Fenix represents our confidence in the team and the Project”.
