Chile is in South America. Replicas of this coin have been made, although the word "copy" has been stamped between the words "Un" and "República". If this is a real coin (and I can't tell from photos - sorry) it is KM# 141.1 with a mintage of 1,420,000, one of the higher mintages of the peso, which was minted from 1867-1891 in .900 silver. An 1882 specimen with slightly higher mintage is on sale at http://www.delcampe.com/ @ 15.75 euros.
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