CPE News (2.28.2022) – Filo Mining Corp. (TSX/Nasdaq First North Growth Market: FIL; OTCQX: FLMMF) has announced a CDN $100 million non-brokered private placement with BHP Western Mining Resources International Pty Ltd, a wholly owned subsidiary of BHP Group Limited (BHP).
Filo Mnining will issue to BHP 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 on a non-diluted basis.
Lundin family trust, through Lorito Holdings S.à.r.l. and Zebra Holdings and Investments S.à.r.l., currently is the single largest shareholder holding over 34% of the outstanding shares of Filo Mining on a non-diluted basis.
The private placement is expected to close on or before March 11, 2022. Filo Mining intends to use proceeds for exploration and development of its Filo del Sol project and for working capital and general corporate purposes.
photo credit: Filo Mining Corp.
Filo Mining Announces C$100 Million Strategic Investment by BHP
VANCOUVER, BC, Feb. 28, 2022 /CNW/ – 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.
Drilling will continue at Filo del Sol throughout 2022 with proceeds raised from the Private Placement supporting ongoing exploration and development activities. Drilling will be a combination of step-out holes to further test the extent of the sulphide mineralized zones, and resource definition holes to provide a better understanding of the deposit geology and grade distribution. Data collected from the drilling will be used to advance the comprehensive geological model which will guide further exploration and project development. The Company is planning to have eight drills active on the Filo del Sol Project by the end of February 2022. Assay results will be released as they are received, analyzed, and confirmed by the Company.
On behalf of Filo Mining,
President and CEO
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.
About Filo del Sol
The Filo del Sol Project hosts a high-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry copper-gold system. In January 2019, the Company completed a Pre-Feasibility Study (“PFS”) on the oxide portion of the project which demonstrated robust economic potential. The technical information relating to the PFS is based on a technical report titled “NI 43-101 Technical Report, Pre-feasibility Study for the Filo del Sol Project” dated February 22, 2019, with an effective date of January 13, 2019.
Subsequent to the completion of the PFS, exploration drilling at the Filo del Sol Project has intersected long intervals of copper, gold and silver mineralization well outside of the resource envelope. Drilling at the Filo del Sol Project has extended the known mineralization over a distance of approximately 4,500 metres north-south, 1,000 metres east-west and almost 1,500 metres deep. The deposit remains open to the north, south, east and at depth. Further exploration of the project remains the strategic focus of the Company moving forward.
Qualified Persons and Technical Notes
The scientific and technical disclosure for the Filo del Sol Project included in this news release have been reviewed and approved by Bob Carmichael, B.A.Sc., P.Eng. who is the Qualified Person as defined by NI 43-101. Mr. Carmichael is Vice President, Exploration for the Company.
About Filo Mining
Filo Mining is a Canadian exploration and development company focused on advancing its 100% owned Filo del Sol copper-gold-silver deposit located in Chile’s Region III and adjacent San Juan Province, Argentina. The Common Shares are listed on the TSX and Nasdaq First North Growth Market under the trading symbol “FIL”, and on the OTCQX under the symbol “FLMMF”. The Company is a member of the Lundin Group of Companies and works closely with the Lundin Foundation, a registered Canadian non-profit supported by the Lundin Group of Companies, who elevate developmental practices across the group companies, ensuring resource operations mobilize local economic opportunities and benefit surrounding communities. Filo Mining is committed to responsible mineral development, ensuring the Filo del Sol Project aligns with international best practices and standards, while developing mutually beneficial relationships with all stakeholders.
The Company’s certified adviser on the Nasdaq First North Growth Market is Aktieinvest FK AB, +46 8 506 51703, firstname.lastname@example.org.
The information contained in this news release was accurate at the time of dissemination, but may be superseded by subsequent news release(s). The Company is under no obligation nor does it intend to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.
This information was submitted by Filo Mining Corp. for publication, through the agency of the contact person set out below, on February 28, 2022 at 01:30 EST.
SOURCE Filo Mining Corp.
For further information: Trevor D’Sa, Investor Relations, Canada +1 604 689 7842, email@example.com; Robert Eriksson, Investor Relations, Sweden + 46 701 112 615, www.filo-mining.com; A Lundin Group Company, www.thelundingroup.com