BHP is set to invest $79m (C$100m) in Filo Mining, a Canadian exploration and development company with a focus on South American projects, to advance the Filo del Sol copper-gold-silver project in Chile.

The investment will be made via a non-brokered private placement in Filo Mining, a member of Lundin Group, by BHP’s wholly owned unit BHP Western Mining Resources International.

In exchange, Filo Mining will issue 6.27 million of its common shares to BHP, at $12.5 (C$15.95) apiece.

Filo Mining said in a statement: “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.” 

BHP will own a 5% stake in Filo Mining after the private placement concludes.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

See Also:

Filo Mining plans to use the investment funds from BHP to support the exploration and development of the Filo del Sol project, as well as for working capital and general corporate purposes. 

Filo Mining president and CEO Jamie Beck said: “The private placement provided us with an opportunity to raise funds at a premium to market, limit dilution and minimise 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.”

The Filo del Sol project is located in the Atacama Region of northern Chile and the adjacent San Juan province of Argentina.

Straddling the border between Argentina and Chile, the project hosts a high-sulphidation epithermal copper-gold-silver deposit that is associated with a large porphyry copper-gold system.

The private placement awaits TSX and other customary regulatory approvals and is planned to close on or before 11 March 2022.