Hot Chili (ASX: HCH) has closed its A$3 million securities purchase plan (SPP) heavily oversubscribed.
The SPP is the final component of a $35.5 million capital raising that will give Hot Chili a strong cash balance to continue its aggressive growth and development strategy for the Productora copper project in Chile.
Hot Chili will issue 6 million new shares and 3 million $0.75 options expiring on the 30th November 2014.
The company has also received confirmation that strategic shareholder, Chilean resources major Compañia de Aceros del Pacifico, has ratified its decision to increase its shareholding in Hot Chili to 5.5% through a private placement.
Hot Chili expects to complete this private placement shortly.
Following this placement the company will have over $45 million in available cash reserves.
Another resource upgrade for the Productora copper project, which will be underpinned by the recent high grade drilling results from the central area of the planned open pit, is expected once all required drilling has been completed.
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