Rio2's Fenix Gold Project: A Golden Opportunity Backed by Wheaton Precious Metals

The mining sector is buzzing with one name right now: Rio2 Limited (RIO2:TSX). Why? Because its Fenix Gold Project—a 4.8 million-ounce monster in Chile’s Atacama Region—isn’t just a dream on paper. It’s happening, and the proof? A $25 million milestone payment from Wheaton Precious Metals (WPM:TSX) in March 2025. This isn’t just a financial boost—it’s a seal of approval from one of the gold sector’s most astute players. Let’s dig into why this makes Rio2 a must-own leveraged play on Latin American gold assets—and why you need to act now before the market catches on.

The Wheaton Stamp of Approval: Why This Matters

Wheaton Precious Metals isn’t your average gold investor. It’s a cash-rich, low-risk growth machine with a track record of backing projects that deliver. By paying $25 million to Rio2 for Fenix’s construction progress, Wheaton is saying two things:
1. Fenix is on track—no delays here.
2. This project is a slam dunk for future gold production.

Wheaton’s bet isn’t random. The company has $2.2 billion in cash (as of Q4 2024) and a strategy focused on de-risked, high-margin assets. Fenix’s heap-leach design—which avoids costly crushing facilities and tailings storage—fits Wheaton’s profile perfectly. This isn’t just a payment; it’s a vote of confidence that Fenix will deliver as promised.

Fenix’s Progress: 19% Complete, but the Momentum Is Massive

As of April 2025, Fenix is 19% complete, with critical path items advancing like clockwork. Here’s what’s already done or in the pipeline:

• PSL Pond Completed (April 2025): The Pregnant Leach Solution pond—key for gold recovery—is fully operational.
• Leach Pad Expansion (May 2025): 10 hectares of the first phase are being lined, with over-liner material in place.
• ADR Plant Winterization (May 2025): The adsorption-desorption-recovery facility is being enclosed to prep for winter, ensuring no delays in commissioning.

By November 2025, the ADR Plant will be commissioned, and the Mine Expansion Study—which could boost annual production from 100,000 oz to 250,000 oz—will wrap up. All this leads to the January 2026 first gold pour, a milestone that will supercharge Rio2’s valuation.

Why This Is a Leveraged Play on Latin American Gold

Rio2 isn’t just riding Fenix’s coattails—it’s all-in on this project. With 100% ownership of Fenix and a $235 million total capex budget, this is a pure-play opportunity. Here’s why it’s primed to outperform:
1. Low-Cost, High-Margin Production: Heap-leach operations like Fenix have operating costs under $500/oz, far below underground mines.
2. Scalability: The expansion study could nearly triple annual production, turning Fenix into a cash-gushing machine for decades.
3. Geopolitical Safety: Chile’s mining-friendly government and stable regulatory environment reduce risks—critical in today’s volatile markets.

The Clock Is Ticking: Why You Can’t Afford to Wait

This is a time-sensitive opportunity. Here’s the math:
- Current Valuation: Rio2’s market cap is ~$500 million, but Fenix’s NPV (net present value) at $1,800/oz gold is over $3 billion.
- 2026 Production Start: Once the first gold pour happens, shares will soar as discounted cash flows materialize.
- Wheaton’s Incentive: Wheaton’s streaming deal gives it a 2.5% royalty on Fenix’s production—but that means Wheaton has every reason to ensure Fenix hits its targets.

The $25 million milestone payment in March (part of a $100 million total commitment) is just the start. Every construction milestone hit—like the ADR commissioning in November—will add fuel to the fire.

Final Call: Act Now Before the Rally Begins

The writing is on the wall: Fenix is real, and Wheaton’s backing isn’t just financial—it’s a strategic endorsement that Fenix will deliver. With construction on track, costs under control, and a gold price near $2,000/oz, Rio2 is a high-beta leveraged bet on Latin American gold.

Don’t wait until the first gold pour in 2026. Buy now, and let Rio2’s upside do the heavy lifting.

This is a now or never moment. Fenix isn’t just a project—it’s a gold mine for investors bold enough to act.