(MENAFN- ProactiveInvestors - Australia) Hot Chili (ASX: HCH) is well funded to progress its flagship Productora copper project in Chile towards a decision to mine after securing commitments for A$32.15 million from its A$35.5 million capital raising.
The company has closed the majority of the second tranche, issuing almost 43.3 million shares priced at A$0.50 each, as well as 21.65 million options exercisable at A$0.75 and expiring 30 November 2014 to raise A$21.65 million.
The balance of the second tranche, consisting of 701,100 shares and 350,550 options will be issued shortly.
Further funds will come from the A$3 million Securities Purchase Plan offer, which is expected to close shortly, as well as the completion of a private placement that will lift the interest of strategic shareholder, Chilean resources major Compañia de Aceros del Pacifico to 5.5% from 3.8%.
Hot Chili will begin 2013 with over A$45 million in cash reserves.
This underpins Hot Chili's development plan to advance Productora towards a decision to mine on one of Chile's fastest emerging new mid-tier coastal copper projects.
Recent drilling at Productora has extended the new wide zone of high grade copper intersected within the central development area.
The new zone has not being considered in previous assumptions for preliminary pit optimisations at Productora and has the potential re-shape the planned central pit development.
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