Freehill Mining Limited has increased its capital raising to $540,000 through a share placement and free-attaching options, aiming to support its processing operations in Chile and strengthen working capital.
- Placement size increased to $540,000 from $300,000
- 103.75 million shares issued at $0.004 each
- 61.875 million free-attaching options exercisable at $0.008
- Funds allocated for Chile processing operations and working capital
- Chairman to participate with $125,000 subject to shareholder approval
Freehill Mining Expands Capital Raise
Freehill Mining Limited (ASX – FHS) has announced an increase in its recent placement, raising a total of $540,000 through the issuance of new shares and options. This follows the initial non-brokered placement announced earlier in October, which targeted $300,000. The additional $240,000 in application funds from sophisticated investors underscores growing interest in the company’s strategic plans.
Details of the Placement
The company has issued 103.75 million shares at a price of $0.004 per share, accompanied by 61.875 million free-attaching options exercisable at $0.008 each, with an expiry date set for October 2028. These options provide investors with potential upside while supporting the company’s capital structure.
Purpose of the Funds
Proceeds from the placement will be directed primarily towards capital expenditure for Freehill’s aggregate processing operations in Chile, a key region for the company’s base metals activities. Additionally, the funds will bolster working capital, providing operational flexibility as Freehill advances its projects.
Chairman’s Participation and Shareholder Approval
Notably, Freehill’s Chairman, Ben Jarvis, is participating in the placement with a $125,000 investment, equating to 31.25 million shares and 15.625 million options. However, the issuance of these securities to the Chairman is contingent upon shareholder approval at the upcoming Annual General Meeting scheduled for November 2025, in compliance with ASX Listing Rule 10.11.
Market Implications
The placement was conducted under the company’s existing placement capacity for unrelated party shareholders, adhering to ASX Listing Rule 7.1. The successful increase in capital raising reflects investor confidence in Freehill’s operational outlook, particularly its Chilean processing assets. However, the final impact will hinge on shareholder approval and the company’s execution of its capital expenditure plans.
Bottom Line?
Freehill’s expanded placement signals confidence in its Chile operations but hinges on upcoming shareholder approval.
Questions in the middle?
- Will shareholders approve the Chairman’s participation at the AGM?
- How will the capital expenditure enhance Freehill’s processing capacity in Chile?
- What is the anticipated market reaction to the increased share and option issuance?