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Rio2 Outlines Plans for Completion of Fenix Gold Mine Financing
VANCOUVER, British Columbia, March 09, 2023 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) is providing an outli
About this update from Rio2 Limited
[{"type":"text","content":" VANCOUVER, British Columbia, March 09, 2023 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) is providing an outline of its plans to complete the financing for the construction of the Fenix Gold Project (“the Project”) in Chile. The plan includes appointing an independent financial advisor, completing a Feasibility Study on the development of the Fenix Gold Project, reviewing and restructuring the precious metals purchase agreement with Wheaton Precious Metals International Ltd and re-engaging with lenders for the senior project debt facility of the Project construction financing. APPOINTMENT OF INDEPENDENT FINANCIAL ADVISOR Rio2 has appointed Endeavour Financial (“Endeavour”) to provide financial advisory services with respect to the financing and construction of the Fenix Gold Mine. Endeavour will work closely with Rio2 board and management in developing the optimum financing solution for the Fenix Gold Project given the Project's current status. Endeavour will provide a full-service approach to the financial advisory, which includes the review and restructuring of the existing precious metals purchase agreement, technical guidance during the completion of the Feasibility Study and dealing with lenders on the debt component of the financing. FENIX GOLD FEASIBILITY STUDY An updated Pre-Feasibility Study was prepared for the Fenix Gold Project in August 2019 and amended and restated on August 3, 2021. Since that date, and over the course of H1 2022, the Company completed detailed engineering and updated cost estimates for the purpose of financing discussions with lenders for the construction of the Project. Discussions with lenders were halted on July 5, 2022, when the approval of the Project’s Environmental Impact Assessment (“EIA”) was formally declined by the Chilean Government. Given the Project's current status, the Company has decided to incorporate the detailed engineering into a new study and update operating and capital costs to reflect today’s cost environment. The gold price will also be updated to a more appropriate level, given the August 2019 study was based on a gold price of $1,250. This new study will be completed to a Feasibility level and is expected to be completed and published by the end of Q2, 2023. The Feasibility Study will be a key document for consideratio...