Filo Mining Corp. [FIL-TSX, NASDAQ First North] has announced plans to raise $100 million from a private placement offering of 4.73 million common shares priced at $21.10 per share. Net proceeds are earmarked for exploration and development at the company’s 100%-owned Filo del Sol project, which straddles the border of Region 111, Chile and San Juan Province, Argentina.
Filo Mining is a member of the Lundin Group of companies. The Lundin Family Trusts have indicated their intention to subscribe for up to $70 million of the private placement. BHP Western Mining Resources International Pty. Ltd., a unit of BHP Billiton Ltd. [BHP-NYSE, BHPLF-OTCPK], which announced a $100 million strategic investment in Filo last year, for a 5.0% stake, is also backing the offering by subscribing for up to $30 million of the private placement.
Details of the offering were announced after the close of trading on May 31, 2023, when Filo shares closed at $21.10. The shares are currently trading in a 52-week range of $28.11 and $14.01.
The Filo del Sol project is a high-sulphidation epithermal copper-gold-silver deposit associated with one or more large porphyry gold systems.
Filo del Sol is located in the Andes Mountains, 140 kilometres southeast of the Chilean city of Copiapo and was recently the subject of a pre-feasibility study that is based on proven and probable reserves of 259.1 million tonnes, grading 0.39% copper, 0.33 g/t gold, 15.1 g/t silver, or 2.2 billion pounds of copper, 2.7 million ounces of gold and 126 million ounces of silver.
The prefeasibility study envisages annual production of approximately 67,000 tonnes of copper (including copper as a precipitate), 159,000 ounces of gold and 8.6 million ounces of silver at a cost of US$1.23 per pound of copper equivalent.
The pre-production capital cost is estimated at $1.27 billion. Over a 14-year mine life (including pre-stripping) the operation is expected to produce almost 1.75 billion pounds of copper as cathode, and 1.92 million ounces of gold and 104 million ounces of silver as dore over a 13-year leach feed schedule.
The company recently announced results from drill holes that tested for different zones at Filo del Sol, including a new porphyry copper-gold centre located along the Filo trend. It is known as the Bonita Zone.
Drilling highlights included hole FSDH075 in the Bonita Zone, which intersected 1,365 metres of 0.42% CuEq (copper equivalent) from 197.1 metres, including 291.7 metres at 0.66% CuEq from 910 metres.
The the Bonita zone discovery confirmed that Filo del Sol hosts a multikilometer, northeast-trending alignment of overlapping porphyry-centred hydrothermal systems, which is open to expansion both to the south and to the north. “Hole 75 has successfully extended the Bonita Zone to the east and at depth, leaving it open for expansion in all directions,’’ said Filo President and CEO Jamie Beck. The company said drilling is ongoing with nine rigs active on site.