Hot Chili Limited Secures Funds Through Successful Entitlement Offer
Hot Chili Limited Announces Fully Subscribed Entitlement Offer
Hot Chili Limited (TSXV: HCH, OTC: HHLKF) has made an impressive mark as it announces the successful completion of its entitlement offer, which was fully subscribed, bringing in A$14.1 million. This strong demand from eligible shareholders across Australia, Canada, and other international markets showcases investor confidence in the company's growth plans.
Key Highlights of the Entitlement Offer
The recent entitlement offer attracted substantial interest from a diverse array of shareholders, reflecting the growing enthusiasm for the company’s initiatives. The offer featured a pro-rata non-renounceable structure, allowing eligible shareholders to acquire two new shares for every thirteen shares held. At an issue price of A$0.60, this strategy enabled Hot Chili to secure much-needed funding for its projects.
Funding Allocation for Growth Projects
This funding will be pivotal in advancing the development of the Costa Fuego copper-gold project. Key milestones include the finalization of strategic partnerships, alongside the initiation of phase-two diamond drilling at the La Verde discovery. These elements are essential for determining the maiden mineral resource estimate and setting the stage for the project's future.
Positive Outlook for Hot Chili
With the closing of the entitlement offer, Hot Chili finds itself in a robust position to accelerate growth and development endeavors. The influx of resources will not only facilitate vital operational phases but also leverage the current favorable market conditions for copper and gold.
Company Management Insights
Hot Chili's Managing Director and CEO, Christian Easterday, expressed profound appreciation for the unwavering support shown by shareholders. He noted, "Raising A$14.1 million stands as a strong validation for the Costa Fuego Project, highlighting its potential as a notable copper development with imminent production timelines." This positive outlook reflects the company's strategic vision amidst a vibrant mining landscape.
Anticipated Developments Following the Offer
The company is set to issue the new shares soon, which marks a significant step in managing its operational strategies. Eligible shareholders were actively engaged in the shortfall facility, which allowed for additional shares, enhancing their commitment to the company’s future endeavors.
Continued Investor Engagement
All valid applications received for the entitlement offer, amounting to 23,648,329 new shares, symbolically illustrate the strong investor backing and confidence in Hot Chili’s operational trajectory. The company aims to utilize these funds for strategic developments, exploration efforts, and maintaining liquidity.
Contact Information for Investors
For further inquiries, interested parties can get in touch with:
Christian Easterday
Managing Director & CEO
Tel: +61 8 9315 9009
Email: admin@hotchili.net.au
Carol Marinkovich
Company Secretary
Tel: +61 8 9315 9009
Email: cosec@hotchili.net.au
Graham Farrell
Investor & Public Relations
Email: graham@hotchili.net.au
Frequently Asked Questions
What is the significance of the entitlement offer for Hot Chili?
The entitlement offer secured A$14.1 million, reflecting strong investor confidence and enabling the company to advance its key projects.
What projects will be funded by the proceeds from the entitlement offer?
The proceeds will primarily support the Costa Fuego copper-gold project, including strategic partnering processes and diamond drilling at La Verde.
Who can participate in the entitlement offer?
Eligible shareholders were those holding shares at the record date who could apply for additional new shares through the shortfall facility.
When will the new shares be issued?
The new shares are scheduled to be issued shortly, following the completion of the entitlement offer.
How can investors contact Hot Chili Limited for more information?
Investors can reach out via email to the company's key contacts or call the office for inquiries regarding the offer and future developments.
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