Hillgrove Resources taps investors for $10m

• Hillgrove Resources (ASX:HGO) is raising $10 million through a share placement
• This will be done through a two-tranche placement
• Recent drilling showed intercepts as high as 36.6m at 3.35 per cent copper from 43m downhole in East Kavanagh
• Funds will be used to extend mine drilling down existing lodes and explore drilling in other deposits
• HGO shares last traded at 6.1 cents

Hillgrove Resources (ASX:HGO) has raised $10 million through a share placement of new fully paid ordinary shares to institutional and sophisticated investors.

The funds will be used to accelerate exploration activities at its Kanmantoo underground copper project in South Australia.

Recent positive drilling results have demonstrated the growth potential at Kanmantoo, with some intercepts reported at 36.6 metres at 3.35 per cent copper from a depth of 43 metres in East Kavanagh.

The placement consists of two tranches:

1. Tranche 1 placement: involves the issue of 133,376,994 new shares at 6 cents per share, raising $8.0 million.
2. Tranche 2 placement: This is subject to approval by the Foreign Investment Review Board (FIRB), and involves the issue of 33,289,673 new shares to freepoint at the same price, raising $2.0 million.

“The $10.0m placement facilitates this exploration growth and also provides working capital support to ramp up the underground mining to the planned steady state production rate,” HGO CEO and Managing Director Lachlan Wallace said.

Notably, major shareholder Freepoint will subscribe for their pro-rata share in the placement, amounting to approximately $2.0 million.

HGO shares last traded at 6.1 cents.