- Hot Chili (HCH) will raise $8.9 million through a placement and rights issue, where the majority of the funds will back the recent purchase of the Cortadera copper-gold project
- The company has successfully raised $5 million in a placement to sophisticated and professional investors
- Additionally, Hot Chili also announced a $3.9 million entitlement offer to eligible shareholders
- Hot Chili says the funds will remove any uncertainty around the company’s near-term funding
- Importantly, HCH plans to announce new drilling at Cortadera to the market in the coming weeks
- Hot Chili is down 10 per cent on the market this morning, selling shares for 1.8 cents each
Hot Chili (HCH) will raise $8.9 million through a placement and rights issue, where the majority of the funds will back the recent purchase of the Cortadera copper-gold project.
Private placement
The company has successfully arranged a $5 million placement to sophisticated and professional investors through the issue of shares at 1.5 cents each and a one-for-two unlisted option at 2.5 cents.
Veritas Securities was the lead manager for the placement, which was overbid and closed within a day, following strong demand from Australian investors.
Entitlement offer
Hot Chili also announced a $3.9 million entitlement offer for new shares on a three-for-20 basis at an issue price of 1.5 cents per share and a one-for-two unlisted option at 2.5 cents, expiring on May 20, 2020.
The rights issue will provide eligible shareholders with the opportunity to participate in the capital raising on the same basis and price as the placement.
Funding
Hot Chili says the funds will remove any uncertainty around the company’s near-term funding.
Hot Chili has an outstanding US$2 million fee, which was used to extend the remaining payment schedule for the purchase of the Cortadera copper-gold project in Chile by 12 months. It also plans to re-commencing drilling at Cortadera.
The company will also use the funds to receive a first estimate resource for Cortadera and San Antonio copper-gold projects.
Cortadera is a major copper-gold porphyry discovery located 600 kilometres north of Santiago, along the Chilean coastal range.
Managing Director Christian Easterday said the funding will help reposition the company’s copper and gold resource base and the recommencement of drilling at Cortadera.
“With each hole, the Cortadera discovery has expanded – delivering six world-class, copper-gold drill results already and still remaining open,” he said.
“We look forward to continuing our push to rapidly grow Cortadera while also working towards establishing a new and expanded, combined development plan for our coastal copper-gold assets in Chile,” he added.
Importantly, HCH plans to announce new drilling at Cortadera to the market in the coming weeks.
Hot Chili is down 10 per cent on the market this morning, selling shares for 1.8 cents each at 11:15 am AEST.