PERTH (miningweekly.com) – Copper/gold developer Hot Chili has raised A$25.6-million in an institutional placement to fund payment of the Corteda copper/gold discovery and to accelerate drilling work.
The company on Tuesday said that it had arranged for the placement of 609.8-million shares, at an issue price of 4.2c each to sophisticated and professional investors.
The placement will be made in two tranches, with the first tranche consisting of more than 597.8-million shares, and the second of more than 353.9-million shares, both of which would be placed under the company’s existing placement capacity.
“The institutional backing of the placement was pleasing and a strong endorsement of Hot Chili’s growth strategy and continuing success at Cortadera,” said MD Christian Easterday, noting that the funding provided certainty over the company’s ability to deliver multiple catalysts in the year ahead.
Funds from the placement will primarily be used to pay the second installment of $10-million for the acquisition of the Cortadera copper/gold discovery, in Chile, and to fund a 40 000-m Phase 4 drilling programme. The drilling programme is scheduled to start early in the new year, and would use two diamond drill rigs and one reverse circulation drill rig, based on five shifts of drilling a day.
“With copper prices at seven-year highs, we are poised to accelerate our plans for Cortadera and position the Costa Fuego coastal copper project as one of the world’s leading new copper developments,” said Easterday.