Perth-based explorer Hot Chili has launched a $35.5 million capital raising to fund development at its Productora copper-gold-molybdenum project in Chile.
Hot Chili announced today it had arranged a two tranche placement to raise the funds, priced at 50 cents per share.
Participants in the raising will also receive one free attaching option at 75 cents, for ever two new shares subscribed for.
The company said it received strong demand for the placement from Australian and North American institutional investors, with Taurus Funds Management and Canadian based Lundin Mining Corporation anchoring the raising.
The funds will be used for further development at Productura, where Hot Chili is fast-tracking a decision to mine a large-scale open pit project in cooperation with Chile’s largest iron ore miner, Compania Minera del Pacifico SA.
“The board of Hot Chili is very pleased with the interest shown in the placement by a number of highly regarded institutions and fund groups both in Australia and overseas,” the company said in a statement.
“The successful capital raising is a strong vote of confidence in the company’s growth and development strategy by some of Hot Chili’s largest shareholders and pedigree names in the copper industry.”
At 10:45AM, WST, Hot Chili stocks were down 2 per cent, at 49 cents.
