Rio2 Limited 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.
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.
Guerrero Olivos specifically advised Rio2 on the “Wheaton Financing,”, which consisted of: (i) a US$100 million flexible prepay arrangement (the “Flexible Prepay Arrangement”), (ii) a US$20 million contingent cost overrun facility in the form of a standby loan facility (the “Standby Loan Facility”) and (iii) the C$5 million Wheaton Private Placement.
Concurrent to the Wheaton Financing, Rio2 and Wheaton have also agreed to an amendment (the “Gold Stream Amendment”) to the existing precious metals purchase agreement that was entered into on November 15, 2021 (the “Existing Stream Agreement”).