Hot Chili to raise $29.9m
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Applecross-based Hot Chili will raise up to $29.9 million courtesy of a private placement, in a bid to further progression at its Costa Fuego copper-gold development in Chile, located 600km from Santiago.
The copper exploration company told the market it would issue 29.86 million new fully paid ordinary shares at an issue price of $1 per share - which approximately represents a 20 per cent discount to Hot Chili's last closing price on May 1, along with a 18.6 per cent discount to the 10-day volume weighted average price prior to the company's trading halt.
Hot Chili appointed Veritas Securities and Cormack Securities as joint lead managers of the placement, along with BMO Capital Markets as a co-manager.
"The placement aims to increase Hot Chili’s trading liquidity on the Toronto Stock Exchange and maintain the company’s strategic funding optionality, while ensuring Costa Fuego remains one of a limited number of globally significant copper developments, not owned by a major mining company, that could deliver meaningful new copper supply this decade," Hot Chili said.
Christian Easterday-led Hot Chili last traded at $1.25 per share.