BHP Western Mining Resources International Pty Ltd, a wholly-owned subsidiary of BHP Group Limited has invested C$100 million in Filo Mining.
Filo will use the investment to advance its Filo del Sol Project.
Located 140 km southeast of the city of Copiapó, Chile on the Chile/Argentina border, Filo del Sol is a high-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry copper-gold system.
The Canadian exploration and development company, part of the Lundin Group of Companies, will issue an aggregate of 6,270,000 common shares at a price of C$15.95 per Common Share.
Upon closing of the Private Placement, BHP will own approximately 5% of Filo Mining’s issued and outstanding Common Shares (undiluted).
BHP will also be granted certain participation and top-up rights, which will allow the company 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 Filo Mining.
“I’m pleased to welcome BHP as our newest shareholder, and believe their investment is a significant endorsement in our project, team, and strategy,” said Jamie Beck, President and CEO of Filo Mining.
“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.”
Filo Mining and BHP have also reached an agreement to form a joint advisory committee in order to share expertise, exploration concepts, and discuss future project development.
The Private Placement is expected to close on or before March 11, 2022 and is subject to TSX, and other customary regulatory approvals.
