VANCOUVER – Filo Mining Corp. (TSX: FIL) (NASDAQ: FIL) (OTCQX: FLMMF) announced that it has closed its previously announced non-brokered private placement by BHP Western Mining Resources International Pty Ltd, a wholly owned subsidiary of BHP Group Limited.
Pursuant to the Private Placement, the Company issued 6,270,000 common shares of the Company at a price of C$15.95 per Common Share for total gross proceeds of approximately C$100 million. The Private Placement was not subject to finders’ fees or commissions.
As a result of the completion of the Private Placement, BHP now owns approximately 5% of Filo Mining’s issued and outstanding Common Shares (on an undiluted basis).
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 Common Shares are subject to a statutory hold period in accordance with applicable securities regulations.
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 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.
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.