Freehill Mining Limited has successfully raised approximately $509,736 through a near-complete entitlement offer, signaling strong shareholder confidence in its expansion plans across Chile’s aggregates and magnetite sectors.
- Entitlement offer achieved 99.35% subscription rate
- Raised $509,736 to support growth initiatives
- Funds to scale aggregates business at three Chilean sites
- Recommencement of magnetite mining at Yerbas Buenas underway
- Shortfall offer remains open for up to three months
Strong Shareholder Backing
Freehill Mining Limited (ASX – FHS) has announced the successful completion of its non-renounceable entitlement offer, securing a remarkable 99.35% take-up from eligible shareholders. The offer raised approximately $509,736 through the issuance of over 127 million new shares priced at $0.004 each, accompanied by free-attaching options. This near-total subscription reflects robust investor confidence in Freehill’s strategic direction.
Funding Growth in Chile
The capital raised is earmarked to accelerate Freehill’s expansion in Chile, where the company operates three aggregates sites experiencing growing demand. Additionally, the funds will support the recommencement of magnetite mining at the Yerbas Buenas project, signaling a renewed focus on operational ramp-up. The company’s leadership emphasizes a balanced approach, targeting near-term cash generation through higher value commodity opportunities that require minimal capital expenditure while maintaining exploration upside.
Shortfall Offer and Future Placement
While the entitlement offer was overwhelmingly subscribed, a shortfall remains, with approximately 419,479 shares and 838,958 options still available. The shortfall offer will remain open for up to three months, during which the company reserves the right to place these securities. This flexibility allows Freehill to potentially attract additional investors or strategic partners aligned with its growth ambitions.
Management Commentary
Non-Executive Chairman Ben Jarvis expressed satisfaction with the strong shareholder support and outlined the company’s priorities – scaling the aggregates business, advancing magnetite mining operations, and pursuing new commodity opportunities with promising cash flow prospects. The company plans to provide more frequent updates, underscoring its commitment to transparency and shareholder engagement as it executes its growth strategy.
Looking Ahead
Freehill’s successful capital raise and clear operational focus position it well to capitalize on market opportunities in Chile’s mining sector. However, the timing and scale of returns from new commodity ventures remain to be seen, making forthcoming operational updates and exploration results critical for investors monitoring the company’s trajectory.
Bottom Line?
Freehill’s near-complete entitlement offer sets the stage for growth, but the market will watch closely for tangible progress in Chile’s mining operations.
Questions in the middle?
- How quickly will Freehill scale its aggregates operations to meet growing demand?
- What is the expected timeline and output for the recommenced magnetite mining at Yerbas Buenas?
- Who might subscribe to the remaining shortfall shares and options, and what impact could that have?