Broken Hill Mines (ASX:BHM) is raising $38.5 million via a placement to fund drilling across its portfolio of assets in New South Wales, as part of accelerating its growth strategy.
The company will issue 38.5 million shares at $1 per share, representing a 5.7% discount to the last trading price on 17 October and 5.8% discount to the five-day volume weighted average price of $1.06 per share.
Blue Ocean Equities acted as the lead manager, while Peloton Capital acted as co-manager for this placement, which is expected to settle on 29 October.
Broken Hill, which has a market capitalisation of $284.8 million, will use the funds to undertake 17,000m of infill drilling at the Rasp Mine to expand the resource and increase ore production, as well as a 25,000m drill program at the Pinnacles Mine.
Exploration at Pinnacles intends to increase the resource estimate while testing targets at the Rope Shaft, Junction, Perseverance, Consols, and Fishers prospects.
The remaining funds will be used to construct a tailings dewatering facility at Rasp to unlock the site’s 750,000 tonnes annual processing capacity.
Executive Chairman Patrick Walta says the company is positioned to provide shareholders with leverage to the growing silver price.
“Now is the optimal time to be investing in growth and increasing this production base,” Walta says.
“Broken Hill Mines looks forward to providing investors with strong news flow throughout 2025 and 2026 as we accelerate our plans toward consolidating Rasp and Pinnacles operations in Broken Hill, and maximising production at the Rasp plant from high grade ore feed.”
Trading Economics reports the price of silver at US$48.95 ($75.40) per ounce as of yesterday (22 October), on the tail of a 69.45% increase for this year-to-date.
Broken Hill Mines is a silver, lead, and zinc explorer focused on unlocking the potential of the Rasp and Pinnacles mines in Broken Hill, New South Wales.
Write to Maddison Elliott at Mining.com.au
Images: Broken Hill Mines
