Hot ChiliLtd.said July 8 that it has raised A$4.4 million in its heavilysubscribed placement of shares. The placement originally intended to raiseA$2.5 million.
Hot Chili will issue approximately 72 million new shares toachieve a net issue price of 5 cents each in the first tranche of the shareissuance, and another 16 million new shares subscribed by Blue Spec DrillingPty. Ltd. for the second tranche.
Funds will be used to advance the high grade Sierra Zapallogold deposit at the Productora copper-gold project in Chile.
The company also said its Chilean joint venture partner,Compania Minera del Pacifico SA has purchased an additional 2.5% interest in the Productorafor US$1.5 million. Pacifico now holds 20% interest in the project.
Funds from the transaction will be used to repay a loanfacility by Hot Chili from Sprott Resource Lending Partnership.
Hot Chili also said it is in negotiations with Pacifico toamend the project's option agreement.