VANCOUVER, BC, Feb. 28, 2022 /CNW/ - Filo Mining Corp.
(TSX: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX:
FLMMF) ("Filo Mining", or the "Company") announces a
C$100 million non-brokered private placement (the "Private
Placement") in Filo Mining by BHP Western Mining Resources
International Pty Ltd, a wholly owned subsidiary of BHP Group
Limited ("BHP"), to advance the Company's Filo del Sol Project.
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Highlights
- BHP will invest C$100 million by
way of a non-brokered private placement in the Company.
- The Company will issue an aggregate of 6,270,000 common shares
of the Company (the "Common Shares") pursuant to the Private
Placement at a price of C$15.95 per
Common Share, representing a 12% premium to the 20-day volume
weighted average trading price of the Common Shares on the Toronto
Stock Exchange (the "TSX") ending February
25, 2022.
- Upon closing of the Private Placement, BHP will own
approximately 5% of Filo Mining's issued and outstanding Common
Shares (undiluted).
Commenting on the Private Placement, Jamie Beck, President and CEO stated, "I'm
pleased to welcome BHP as our newest shareholder, and believe their
investment is a significant endorsement in our project, team, and
strategy. The Private Placement provided us with an opportunity to
raise funds at a premium to market, limit dilution and minimize 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."
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. In addition, the Company and BHP have agreed to
form a joint advisory committee to share expertise, exploration
concepts, and discuss future project development.
Filo Mining intends to use the proceeds of the Private Placement
for exploration and development of the Company's Filo del Sol
project and for working capital and general corporate
purposes. The Private Placement is expected to close on or
before March 11, 2022 and is subject
to TSX, and other customary regulatory approvals. The Common
Shares will be subject to a statutory hold period in accordance
with applicable securities regulations. No finder's fee is
payable in connection with this Private Placement.
Outlook
Drilling will continue at Filo del Sol throughout 2022 with
proceeds raised from the Private Placement supporting ongoing
exploration and development activities. Drilling will be a
combination of step-out holes to further test the extent of the
sulphide mineralized zones, and resource definition holes to
provide a better understanding of the deposit geology and grade
distribution. Data collected from the drilling will be used
to advance the comprehensive geological model which will guide
further exploration and project development. The Company is
planning to have eight drills active on the Filo del Sol Project by
the end of February 2022. Assay results will be released as
they are received, analyzed, and confirmed by the Company.
On behalf of Filo Mining,
Jamie Beck
President and CEO
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of Filo Mining's securities in
the United States. The securities
have not been and will not be registered under the U.S. Securities
Act or any state securities laws and may not be offered or sold
within the United States or to, or
for the account or benefit of, U.S. Persons unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
About Filo del Sol
The Filo del Sol Project hosts a high-sulphidation epithermal
copper-gold-silver deposit associated with a large porphyry
copper-gold system. In January
2019, the Company completed a Pre-Feasibility Study
("PFS") on the oxide portion of the project which
demonstrated robust economic potential. The technical
information relating to the PFS is based on a technical report
titled "NI 43-101 Technical Report, Pre-feasibility Study for the
Filo del Sol Project" dated February 22,
2019, with an effective date of January 13, 2019.
Subsequent to the completion of the PFS, exploration drilling at
the Filo del Sol Project has intersected long intervals of copper,
gold and silver mineralization well outside of the resource
envelope. Drilling at the Filo del Sol Project has extended
the known mineralization over a distance of approximately 4,500
metres north-south, 1,000 metres east-west and almost 1,500 metres
deep. The deposit remains open to the north, south, east and at
depth. Further exploration of the project remains the
strategic focus of the Company moving forward.
Qualified Persons and Technical Notes
The scientific and technical disclosure for the Filo del Sol
Project included in this news release have been reviewed and
approved by Bob Carmichael, B.A.Sc.,
P.Eng. who is the Qualified Person as defined by NI 43-101.
Mr. Carmichael is Vice President, Exploration for the Company.
About Filo Mining
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in Chile's Region
III and adjacent San Juan Province, Argentina. The Common Shares are listed on the
TSX and Nasdaq First North Growth Market under the trading symbol
"FIL", and on the OTCQX under the symbol "FLMMF". The Company
is a member of the Lundin Group of Companies and works closely with
the Lundin Foundation, a registered Canadian non-profit supported
by the Lundin Group of Companies, who elevate developmental
practices across the group companies, ensuring resource operations
mobilize local economic opportunities and benefit surrounding
communities. Filo Mining is committed to responsible mineral
development, ensuring the Filo del Sol Project aligns with
international best practices and standards, while developing
mutually beneficial relationships with all stakeholders.
Additional Information
The Company's certified adviser on the Nasdaq First North Growth
Market is Aktieinvest FK AB, +46 8 506 51703,
rutger.ahlerup@aktieinvest.se.
The information contained in this news release was accurate at
the time of dissemination, but may be superseded by subsequent news
release(s). The Company is under no obligation nor does it intend
to update or revise the forward-looking information, whether as a
result of new information, future events or otherwise.
This information was submitted by Filo Mining Corp. for
publication, through the agency of the contact person set out
below, on February 28, 2022 at
01:30 EST.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the
press release constitutes "forward looking information" and
"forward-looking statements" within the meaning of applicable
Canadian, United States and other
securities legislation (collectively, "forward-looking
information"). The forward-looking information contained in this
press release is based on information available to the Company as
of the date of this press release. Except as required under
applicable securities legislation, the Company does not intend, and
does not assume any obligation, to update this forward-looking
information. Generally, this forward-looking information can
frequently, but not always, be identified by use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or statements that certain
actions, events, conditions or results "will", "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved" or
the negative connotations thereof.
All statements other than statements of historical fact may be
forward-looking statements. Forward looking information is
necessarily based on estimates and assumptions that are inherently
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of the Company to be materially different from
those expressed or implied by such forward-looking information. The
Company believes that the expectations reflected in the
forward-looking statements and information included in this press
release are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements and information should not be unduly relied upon. This
statement and information speaks as of the date of the press
release.
In particular, this press release contains forward-looking
statements or information with respect to the use of proceeds from
the Private Placement, the expected timing for closing of the
Private Placement, the ability to obtain the necessary regulatory
approvals in regards thereto, the potential benefits resulting from
the formation and operation of the joint technical advisory
committee formed by the Company and BHP, expectations regarding the
Company's exploration plans at the Filo del Sol Project, including
the extent and type of drilling that will occur at the Filo del Sol
Project in 2022, the expected use of data from such drilling
activities, the expected timing for the release of assay results,
the strategic focus of the Company moving forward and the Company's
commitment to responsible development of the Filo del Sol Project.
There can be no assurance that such statements will prove to be
accurate, as the Company's actual results and future events could
differ materially from those anticipated in this forward-looking
information as a result of the factors discussed in the "Risk
Factors" section in the Company's most recent MD&A and annual
information form available at www.sedar.com.
Forward-looking information is based on certain assumptions that
the Company believes are reasonable, including that the necessary
approvals with respect to the Private Placement will be obtained in
a timely manner, that the current price of and demand for
commodities will be sustained or will improve, the supply of
commodities will remain stable, that the general business and
economic conditions will not change in a material adverse manner,
that financing will be available if and when needed on reasonable
terms, that the Company will not experience any material labour
dispute, accident, or failure of plant or equipment, and that the
Company will receive regulatory approvals, permits and licenses, as
and when required in a timely manner. These factors are not, and
should not be construed as being, exhaustive. Although the Company
has attempted to identify important factors that would cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated, or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. All the forward-looking information
contained in this document is qualified by these cautionary
statements. Readers are cautioned not to place undue reliance on
forward-looking information due to the inherent uncertainty
thereof.
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SOURCE Filo Mining Corp.