Rio2 Limited (TSX-V:RIO, OTCQX:RIOFF) said a political shake-up in Chile is positive news for its Fenix Gold project.
The company filed an administrative appeal before the Ministries Committee on August 31, 2022, against the Atacama Regional Evaluation Commission’s decision not to approve the Environmental Impact Assessment (EIA) for its Fenix Gold Project in Chile, one of the largest undeveloped gold oxide, heap leach ventures in the Americas.
Since then, voters in the country rejected a new constitution in a September 4 referendum, leaving the government to develop one that better reflects the wishes of the Chilean people, according to Rio2.
READ: Rio2 Limited sells package of non-core Chilean royalty interests to Osisko Gold Royalties for US$5M
At the same time, President Gabriel Boric overhauled his cabinet, replacing the ministers of mining, energy and the interior.
Subsequently, Chile’s government introduced the “Let’s Invest in Chile” plan that aims to increase investment by five percentage points in 2023, according to Rio2.
Part of the plan is pertinent to Rio2 and its Fenix Gold project, including the implementation of a single point of contact for sectorial permits, the company said.
A permanent working group will be set up between the Energy, Mining and Economy Ministries, InvestChile and the development and investment divisions of each regional government to periodically monitor the progress of projects in each region, according to Rio2.
The project represents a significant investment in gold mining in Chile, of approximately US$210 million of initial and sustaining capital, and will generate employment for at least 1,200 people during the construction phase and 550 people during 17 years of operations, the company said.
Since early September, the Fenix Gold team has been coordinating meetings with government ministries and authorities to present its case in preparation for the appeals process. To date, Fenix Gold said it hasn’t been advised when the Committee of Ministers will review its appeal.
Rio2 also noted that Andrew Cox has been promoted to CEO, from his current role as chief operating officer.
Alex Black, the company’s current CEO, will assume a newly created role as executive chair, while current non-executive chair Klaus Zeitler will assume the role of lead director. The company also said that the executive vice president of strategy, Jose Luis Martinez will depart the company.
Rio2 said it completed the sale of a package of Chilean royalty interests to Osisko Gold Royalties (TSX:OR) Ltd for aggregate consideration of US$5 million. The royalty sale involved the transfer of Rio2’s 1.5% royalty on the Anocarire project and its 1.25% royalty on the Horizonte project, both in Chile.
Contact the author at susie@proactiveinvestors.com