Rio2 assembles $125 million financing for Chilean mine
Rio2 (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) said today it arranged financing for its Fenix gold project in Chile.
The financing consists of about $50 million debt arranged by BNP Paribas, $50 million stream deal with Wheaton Precious Metals and a share offering. Total financing will range between $125 to $135 million.
Rio2 said that the financing will allow it to commence pre-construction activities at the Fenix Gold Project prior to receiving Environmental Impact Assessment approval and permits for its planned 20,000 tonnes per day, run of mine, dump leach operations.
"Since the outset, the primary focus of Rio2 has been to accelerate the Fenix Gold Project to production and the Mine Financing Package will allow the Company to maintain its current schedule for first gold production in Q4, 2022," said the company in a news release.
The stream with Wheaton is 6.0% of the gold production until 90,000 ounces of gold have been delivered and 4.0% of the gold production until 140,000 ounces of gold have been delivered, after which the stream will reduce to 3.5% of the gold production for the life of mine.