11:38 AM EST, 12/16/2024 (MT Newswires) -- Rio2 ( RIOFF ) on Monday provided an update on construction of its Fenix Gold Mine in the Atacama Region, in Chile.

The company said advancements for the project include the hiring of the Chilean workforce, mobilization of civil construction and plant construction contractors, and the start of construction of the heap leach pad and adjoining PLS pond.

Rio2 ( RIOFF ) has also entered a fixed-price contract totaling US$49 million with its plant construction contractor, HLC Chile, for the construction of the Fenix Gold Mine adsorption, desorption, and gold recovery (ADR) plant, associated infrastructure and site electrical distribution lines. Rio2 ( RIOFF ) will provide guidance next month for the construction schedule and associated budget, along with a projection of when the first gold production is expected to be achieved.

"Since closing our debt and equity financing in October, we have made excellent progress on all fronts related to the construction of our Fenix Gold Mine. The execution of the mine built on our proven alliance approach with our civil contractor and plant contractor is progressing as planned and the negotiation of a fixed price contract for the plant construction is a positive bonus to managing and controlling our construction budget," said chief executive Andrew Cox.

Rio2 ( RIOFF ) shares were last seen down $0.005 to $0.625 on the TSX Venture Exchange.

Price: 0.63, Change: -0.01, Percent Change: -0.79