The Filo del Sol Project hosts a high-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry copper-gold system
Filo Mining Corp. (TSX: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX: FLMMF) (“Filo Mining”, or the “Company”) announces a C$100 million non-brokered private placement (the “Private Placement”) in Filo Mining by BHP Western Mining Resources International Pty Ltd, a wholly owned subsidiary of BHP Group Limited (“BHP”), to advance the Company’s Filo del Sol Project. View PDF version
BHP will invest C$100 million by way of a non-brokered private placement in the Company.
The Company will issue an aggregate of 6,270,000 common shares of the Company (the “Common Shares”) pursuant to the Private Placement at a price of C$15.95 per Common Share, representing a 12% premium to the 20-day volume weighted average trading price of the Common Shares on the Toronto Stock Exchange (the “TSX”) ending February 25, 2022.
Upon closing of the Private Placement, BHP will own approximately 5% of Filo Mining’s issued and outstanding Common Shares (undiluted).
Commenting on the Private Placement, Jamie Beck, President and CEO stated, “I’m pleased to welcome BHP as our newest shareholder, and believe their investment is a significant endorsement in our project, team, and strategy. The Private Placement provided us with an opportunity to raise funds at a premium to market, limit dilution and minimize our financing costs. This secures the next leg of funding required for us to rapidly expand our exploration plans at Filo del Sol as we define this remarkable deposit.”
In connection with the Private Placement, BHP will be granted certain participation and top-up rights, allowing BHP to maintain its ownership interest from time to time, provided that such participation rights will not apply to any portion of BHP’s ownership interest in excess of a 9.9% undiluted ownership level in the Company. In addition, the Company and BHP have agreed to form a joint advisory committee to share expertise, exploration concepts, and discuss future project development.
Filo Mining intends to use the proceeds of the Private Placement for exploration and development of the Company’s Filo del Sol project and for working capital and general corporate purposes. The Private Placement is expected to close on or before March 11, 2022 and is subject to TSX, and other customary regulatory approvals. The Common Shares will be subject to a statutory hold period in accordance with applicable securities regulations. No finder’s fee is payable in connection with this Private Placement.
President and CEO Jamie Beck said: “This news release does not constitute an offer to sell or a solicitation of an offer to buy any of Filo Mining’s securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.”
Source: Company Press Release