BHP Group Invests $100 Million Into Filo Mining, Taking 5% Stake
BHP Group (NYSE: BHP) continues to expand its interests in the mining sector, announcing this morning that they will be making a major investment into that of Filo Mining (TSX: FIL). The investment is to be used to further develop the firms Filo del Sol copper-gold-silver project in Chile.
The investment will see BHP Group subsidiary BHP Western Mining Resources invest $100 million into Filo via a non-brokered financing. Under the terms of the financing, the company will purchase 6.3 million shares at a price of $15.95 per share. No warrant is included in the offering.
Effectively, the transaction amounts to BHP taking a 5% stake in the company, with the company also retaining participation and top-up rights. BHP has also agreed to share expertise, exploration concepts, and discuss future development of the project, suggesting that there will be a working relationship between the two firms on a go-forward basis.
Funds from the investment will be utilized for working capital, general corporate purposes, and the development of the firms Filo del Sol project. Further drilling is expected to continue at the project, using funds raised from the offering. The program is to focus on both step-out holes to test the extent of mineralization, as well as resource definition holes. A total of eight drill rigs are expected to be on site conducting the program.
Filo Mining last traded at $14.30 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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