Araucanía had been recently incorporated to Chile (1861-1883) when Ricci in 1904 brought over a group of Italian immigrants from Emilia-Romagna, promising good lands for agriculture.
Once in Chile, immigrants were disappointed by the fact the lands he granted them were hilly forest not suitable for agriculture.
The colony was initially called Nueva Italia, but changed in 1907 to the name Capitán Pastene.
In 1906, Ricci repeated the scheme bringing Italian immigrants in Brazil to Nueva Etruria west of Gorbea.
Ricci was rewarded by the Chilean state with lands for helping colonizing the country.