- Hot Chili (HCH) has successfully arranged a $25.6 million private placement and will use the funds to accelerate drilling at the Cortadera discovery in Chile
- More than 609 million new shares will be issued to sophisticated and professional investors at 4.2 cents
- This price represents a 14 per cent discount to the company’s last closing price of 4.5 cents and an 18 per cent discount to the 15-day volume-weighted average price
- Hot Chili will use the money to pay the second instalment of its acquisition of the Cortadera copper-gold discovery in Chile
- The funding will kickstart a 40,000-metre drill program which is set to begin early next year
- After being reinstated back on the ASX, Hot Chili is down 4.08 per cent with shares trading at 4.7 cents
Hot Chili (HCH) has successfully arranged a $25.6 million private placement and will use the funds to accelerate drilling at Cortadera.
All up, 609,800,000 new shares will be issued to sophisticated and professional investors at 4.2 cents.
This price represents a 14 per cent discount to Hot Chili’s last closing price of 4.5 cents, and an 18 per cent discount to the 15-day volume-weighted average price.
Shares expected to settle and be issued on or around December 4.
Hot Chili will use the money to fund a US$10 million (around A$13.59 million) payment to buy the Cortadera copper-gold discovery in Chile.
The funding will also kickstart a 40,000-metre phase four drill program which is set to begin early next year.
“The institutional backing of the placement was pleasing and a strong endorsement of Hot Chili’s growth strategy and continuing success at Cortadera,” Managing Director Christian Easterday said.
“With copper price at seven-year highs, we are poised to accelerate our plans for Cortadera and position the Costa Fuego coastal copper project as one of the world’s leading new copper developments,” he added.
After being reinstated back on the ASX, Hot Chili is down 4.08 per cent with shares trading at 4.7 cents at 11:37 am AEDT.