Hot Chili in $22m capital raising

WA-based Hot Chili has completed a private placement, raising $22.3 million for its Productora copper-gold project in Chile, which has extensive drilling and scoping studies already in place.

The capital raising involves approximately 37.1 million shares being issued at 60 cents per share, with one free-attaching 75 cent call option for every three new shares subscribed by participants in the placement.

The placement has been made to four of Hot Chili’s top five strategic shareholders, including Australian-based Panoramic Resources, as well as sophisticated and professional investor clients of Bell Potter Securities.

Bell Potter acted as lead manager for the capital raising.

The Chile-focused company, led by managing director Christian Easterday, said in an announcement today that the raising underpins the funding of a rapid resource growth and development strategy.

The raising will also help finance the completion of a major second-phase drilling program, a scoping study for the third quarter of 2012, resource estimate upgrades and further key land acquisitions during 2012.

Hot Chili shares are up two cents from yesterday’s closing on the ASX, currently trading at 61 cents.