Chile-focused explorer Hot Chili says it has had strong support for a $35.5 million capital raising aimed at ramping up the development of its flagship Productora copper project in the South American country.
The company will place $32.5 million worth of new shares priced at 50 cents each with institutions and sophisticated investors with a further $3 million in new shares to be issued to retail investors via a share purchase plan.
Taurus Funds Management, affiliates of Sprott and Canadian-based Lundin Mining will anchor the capital raising securing $17.5 million worth of shares on offer in the placement.
Hot Chili said funds from raising would be used for the continuation of exploratory drilling and development studies at the company's flagship Productora copper project located in Chile's coastal range.
"Productora is being fast-tracked towards a decision to mine on a large-scale open pit project in cooperation with Hot Chili's project partner and substantial shareholder Compania Minera del Pacifico, Chile's largest iron ore miner," the company said in a statement.Hot Chili shares were up three cents, or 6 per cent, to 53 cents at the close after emerging from a trading halt.