Hot Chili raises cash for Cortadera buy
PERTH (miningweekly.com) – Copper developer Hot Chili will raise A$40-million in a share placement and share purchase plan (SPP) to fund the final acquisition payment for the Cortadera copper/gold discovery, in Chile.
The company on Friday said it had successfully arranged a A$35-million private placement cornerstoned by mining major Glencore, as well as other domestic and international institutional investors.
Glencore earlier this week took a 9.99% stake in Hot Chili for a A$14.4-million investment, obtaining the right to appoint a director to the Hot Chili board, and a member to the technical steering committee to advise on operational matters.
Glencore would now subscribe for A$13.93-million under the placement.
Hot Chili will place more than one-billion shares, at a price of 3.2c each in two tranches, under the share placement, with the first tranche to consist of some 665-million under the company’s existing placement capacity.
The second tranche placement of more than 428.7-million shares will be subject to shareholder approval at a meeting scheduled for mid-September.
In addition to the share placement, Hot Chili will also undertake an SPP to raise an additional A$5-million, offering shareholders the opportunity to subscribe for 156.25-million new shares in the company, also at a price of 3.2c each.
The SPP will open on August 17 and close on September 10.
“The A$40-million funding secures ownership of Cortadera, and Glencore’s investment and involvement is a strong endorsement of our future,” said Hot Chili MD Christian Easterday.
Cortadera forms part of Hot Chili’s Costa Fuego development, along with the Productora and El Fuego assets, and which are jointly estimated to host some 2.9-million tonnes of copper, 2.7-million ounces of gold, 9.9-million ounces of silver and 64 000 t of molybdenum.
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