Hot Chili (HCH.AX) has now closed its previously announced placement, raising a total of A$40M in a financing priced at A$1.65 (the equivalent of C$1.56 per share). The proceeds of this financing will be sued to continue to advance its flagship Costa Fuego copper project in Chile. Interestingly, the company’s three largest shareholders participated in the financing.
The financing puts the company in a strong position to advance Costa Guego through the environmental impact assessment stage while the company will also have plenty of cash on hand to continue to work on the La Verde copper-gold discovery. This could provide additional tonnage to be incorporated in the mine plan later on. With the copper price trading at in excess of US$6 per pound, we aren’t surprised to see Hot Chili was able to raise a substantial amount of cash.
Disclosure: The author has no position in Hot Chili. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
