Canada-headquartered Rio2 is set to advance the development of Chile’s next gold mine with a secured $150-million construction financing package.

The financing includes $120-million from Wheaton Precious Metals, alongside a C$40-million overnight marketed public offering of common shares and a C$5-million non-brokered private placement of shares to Wheaton.

Arranged with the guidance of Endeavour Financial as adviser, the funding package marks a significant derisking milestone for the Fenix mine, which recently obtained all key sectoral permits necessary for construction.

"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,” said executive chairperson Alex Black.

“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.”

Wheaton CEO Randy Smallwood described Fenix as 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,” he said.

The Fenix project is one of the largest undeveloped gold oxide, heap leach projects in the Americas, boasting a measured and indicated mineral resource of 4.8-million ounces of gold. Rio2 believes this project will make a positive contribution to the Atacama region and to Chile's mining landscape.

This initiative represents a significant investment in the country’s gold mining industry by a junior company, with an estimated $235-million allocated for initial and sustaining capital.

The project will operate as a run-of-mine heap leach facility, eliminating the need for crushing or tailings storage facilities.