Freehill Issues 75 Million Shares at $0.004 to Fund Chile Plant Upgrades

Placement Details and Capital Raise

Freehill Mining Limited (ASX – FHS) has announced a $300,000 non-brokered placement involving the issuance of 75 million shares priced at $0.004 each. Alongside the shares, investors will receive free-attaching options exercisable at $0.008, valid for three years. The placement is supported by the Chairman, Ben Jarvis, and one other existing shareholder, with the Chairman’s participation of $125,000 pending shareholder approval at the upcoming Annual General Meeting in November 2025.

Strategic Use of Funds

The net proceeds from this capital raise are earmarked primarily for capital expenditure on Freehill’s aggregate processing operations in Chile, as well as for working capital purposes. The company is investing in new plant and equipment aimed at enhancing plant efficiency, a move designed to improve sales and margins in its aggregates business. This operational upgrade aligns with Freehill’s broader strategy to establish a stable and profitable revenue stream from its core aggregates operations.

Management Commentary and Outlook

Non-Executive Chairman Ben Jarvis expressed optimism about the company’s progress, highlighting growing demand from a broader customer base and expecting these improvements to be reflected in the December quarter results. Jarvis also noted that Freehill is actively assessing opportunities in higher-value commodities, signaling a potential strategic pivot or diversification aimed at enhancing shareholder value beyond the aggregates sector.

Shareholder Approval and Market Implications

The Chairman’s participation in the placement requires shareholder approval under ASX Listing Rule 10.11, which will be sought at the forthcoming AGM. Meanwhile, the shares issued to the unrelated existing shareholder fall within the company’s placement capacity under Listing Rule 7.1, allowing for a more streamlined issuance process. Investors will be watching closely for the AGM outcome and subsequent operational updates, particularly the impact of capital expenditure on production efficiency and profitability in Chile.

Looking Ahead

Freehill Mining’s recent capital raise and strategic focus on operational improvements and commodity diversification suggest a company positioning itself for growth and resilience. While the immediate priority remains the aggregates business, the exploration of higher-value commodities could mark a significant evolution in Freehill’s business model, with potential implications for its market valuation and investor appeal.