Rio2's share price slumps on Chilean vote

Chile’s Regional Evaluation Commission has voted for not approving Rio2’s Fenix gold project’s Environmental Impact Assessment, the company said.

 Rio2's Fenix drilling

Rio2's Fenix drilling

"Following this decision, the company will work on evaluating its options and decide on an action plan," Rio2 said.

"It is important to highlight that Fenix Gold remains with the conviction that it has provided enough technical information and studies to obtain a favorable EIA decision," the company added.

Fenix Gold is Rio2's Chilean subsidiary. The REC includes 12 governmental institutions.

Rio2 pointed to the Environmental Assessment Services considerations which include the project fulfilling all applicable regulations and meeting the environmental requirements for permits. As well as Fenix Gold having completed its citizen participation and indigenous consultation processes.

"The project represents a significant investment in the gold mining business in Chile by a junior mining company and will generate employment for approximately 1,200 people during the construction phase and 550 people during the 17 years' operations phase," Rio2 said.

"The mine being contemplated at the project will be a run-of-mine heap leach operation, no crushing or tailings storage facilities are required thereby minimizing the overall impact and footprint of the project," it said.

The company plans to update the market once it completes an action plan and revised timeline for its next steps.

On July 4, Chile's constitutional assembly handed over the final text of a proposed new constitution to President Gabriel Boric, finalizing a year-long process to replace the country's current arrangements that date back to the Augusto Pinochet dictatorship that ended in 1990.

The proposed changes would strengthen workers' rights, toughen environmental rules including the protection of glaciers, overhaul water ownership and give indigenous groups a greater say in investment projects.

The proposed text is to be voted on through a mandatory plebiscite on September 4.

Rio2's share price slumped 40% day on day to C$0.18 (US$0.14) on July 6. The company has a market capitalization of C$46.35 million.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.


Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.


Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.


Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.


Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.