Rio2 Secures Major Financing for Fenix Gold Project Development
Rio2 Obtains Financing Package for Fenix Gold Project
Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF) has officially arranged a substantial financing package of approximately US$150 million. This funding is specifically intended to support the construction and operational costs associated with the Company's wholly-owned Fenix Gold Project.
Key Highlights of the Financing Package
This financing arrangement is a crucial step forward for the Fenix Gold Project as it brings significant security against the financial risks usually associated with mining development. With all the necessary sectorial permits now acquired, Rio2 is well-positioned to embark on the full-scale development and operational phases at Fenix Gold.
Components of the Financing
The overall financing consists of:
- A US$120 million financing deal with Wheaton Precious Metals International Ltd. (“Wheaton”) known as the “Wheaton Financing”.
- A marketed overnight public offering of common shares projected to raise C$40 million, spearheaded by Raymond James Ltd. and Eight Capital.
- A C$5 million non-brokered private placement of common shares with Wheaton.
Positive Growth Prospects for Rio2 and Fenix
Alex Black, Executive Chairman of Rio2, expressed enthusiasm regarding this financing package, stating that the collaborative efforts with Endeavour Financial, their advisory partner, have culminated in a competitive financing solution. He noted that the ongoing support from Wheaton not only strengthens the financial foundation of the project but also reflects the high caliber of the Fenix Gold Project.
Moreover, Randy Smallwood, President and CEO of Wheaton, shared his excitement about the financing arrangements, highlighting the attractive features of the Fenix Gold Project and praising the experienced team at Rio2. This partnership indicates a strong confidence in the project's potential and the expertise behind it.
Understanding the Wheaton Financing
As part of the Wheaton Financing, Rio2 has entered into a series of agreements, including:
- A US$100 million flexible prepay agreement for total gold deliveries of 95,000 ounces on a structured schedule.
- A US$20 million standby loan facility available upon the successful drawing of the flexible prepay agreement.
- A commitment from Wheaton to support the public financing around the placement of shares, which will be beneficial for further capital capitalization.
Public Offering and Use of Funds
Rio2 has commenced an overnight marketed public offering aiming to raise up to C$40 million, which will be utilized for the construction and operation of the Fenix project.
The public offering is anticipated to conclude shortly, ensuring that the development of the Fenix Gold Project maintains its momentum. The company has stipulated that net proceeds from the offering and Wheaton’s private placement will be devoted to the project’s construction, operational expenses, and general working capital needs.
Commitment to Environmental Standards
Rio2 prides itself on adhering to rigorous environmental standards throughout the project lifecycle. Their commitment reflects a dedication to responsible mining operations that encompass social, environmental, and economic considerations, illustrating their desire to positively impact the areas in which they operate.
Advisory and Technical Support
Endeavour Financial serves as exclusive financial advisors to Rio2. They are collaborating with Raymond James Ltd. and Eight Capital in orchestrating the public offering. The company's legal advisors include reputable firms such as DLA Piper and McMillan in connection with the ongoing financing arrangements.
The scientific content contained in this announcement has been verified and approved by Ronoel Vega, ensuring adherence to industry standards under National Instrument 43-101.
Frequently Asked Questions
What is the purpose of the financing package for Rio2?
The financing package is designed to fund the construction and operational costs of the Fenix Gold Project.
Who are the major partners in this financing?
The major partner is Wheaton Precious Metals International Ltd., providing a significant portion of the financing through various arrangements.
How much capital is Rio2 planning to raise through the public offering?
Rio2 aims to raise up to C$40 million through the marketed public offering.
What are the environmental commitments of Rio2?
Rio2 is committed to exceeding standard environmental regulations as part of their responsible mining strategy.
Who verified the technical details of the Fenix project?
The technical details of the project have been reviewed and approved by Ronoel Vega, a qualified professional in the field.
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