- Write by:
-
Wednesday, March 2, 2022 - 11:04:08
-
1603 Visit
-
Print
Mining News Pro - BHP, which has been expanding its copper footprint in the past, will invest C$100 million ($79m) in Canadian junior Filo Mining (TSX: FIL), which is developing a copper-gold-silver project straddling the border between Argentina and Chile.
According to
Mining News Pro - The Vancouver-based company said on Monday it would
issue 6.27-million common shares in a private placement to BHP at
C$15.95 a piece, representing a 12% premium to the 20-day
volume-weighted average trading price. Filo Mining’s stock closed at
C$14.30 a share on Friday.
Once the private placement is
completed, which is expected to happen on or before March 11, BHP will
own about 5% of Filo Mining and will be granted certain participation
and top-up rights, the companies said.
The junior plans to use the funds for further exploration and development of its Filo del Sol project.
According
to Lundin Mining Corp., Filo Mining’s majority owner, the project is
expected to be an operation of equal size or bigger that its Candelaria
mine in Chile. Chairman Lukas Lundin has said that building Filo del Sol
will cost between $4 billion and $5 billion.
Filo’s president
and CEO Jamie Beck said BHP’s investment was a “significant endorsement”
of the company’s project, team and strategy.
Beck added that the
company and BHP had also agreed to form a joint advisory committee to
share expertise, exploration concepts, and discuss future project
development.
Stamp on project’s potential
“We believe that
while funding for exploration was never in doubt, the quality of the
source of funding in this transaction, and the potential capacity of BHP
to fund future development endeavors places a firm stamp on the
project’s potential,” Haywood Capital Markets said in a Monday note to
investors.
“We see potential project longevity spanning several decades,” the experts added.
Filo
Mining, and its predecessors, have been exploring at Filo del Sol since
the 1999-2000 field season. Work has been limited to the summer season,
typically between November and April.
Based on the latest
figures released by the company, the Filo del Sol project will have an
estimated after-tax value of C$1.28 billion, with an internal rate of
return of 23%.
The asset is expected to produce an annual average
of 67,000 tonnes of copper, 159,000 ounces of gold and 8.65 million
ounces of silver.
- mining , mining news , today mine , mine , glencore , riotinto , new mexico , minenewspro , abandoned mine , copper , zink. steel , iron
- Mining News Agency
Short Link:
https://www.miningnews.ir/En/News/620794
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Codelco is exploring more partnerships with the private sector as Chile’s state copper behemoth looks to recover from a ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
Iron ore futures prices drifted higher on Thursday as the latest soft data from top consumer China triggered renewed ...
Peru’s Las Bambas copper mine, owned by China’s MMG, is facing renewed blockades of a key transport route after failed ...
Vitol Group confirmed that it’s starting to rebuild a trading book for metals after a long stint out of the market, with ...
Newmont confirmed on Wednesday that two members of its workforce died this week at the Cerro Negro mine located in the ...
Rio Tinto said on Wednesday it is teaming up with a global venture studio and start-up investor to back the development ...
No comments have been posted yet ...