01:02 PM EDT, 04/09/2024 (MT Newswires) -- Rio2 ( RIOFF ) on Tuesday said it upsized a previously announced private placement of shares to raise C$23.02 million, up from its prior C$10-million target, due to strong demand.

The company now plans to issue 59.03-million shares priced at C$0.39 apiece in the financing, with the funds used to advance development of its Fenix Gold Project in Chile.

"The company received significant interest from key existing shareholders to participate in financing our company at this stage of its development, far exceeding the $10 million maximum amount first announced. In my opinion, this strong show of support validates the robustness and quality of the Fenix Gold Project and the completion of the offering will place the company in a strong position to secure construction financing later this year," executive chair Alex Black said in a release.

The offering is expected to close by April 17.

Rio2 ( RIOFF ) shares were last down C$0.01 to C$0.42 on the TSX Venture Exchange.