The Capital Crunch: Hot Chili spices up coffers with $24.9 million

This week’s first ‘Capital Crunch’ sees Hot Chili (ASX:HCH) open a share purchase plan (SPP) to raise $5 million, while also closing a private placement which raised $24.9 million. 

Hot Chili, which has a market capitalisation of $127.80 million, will be using the proceeds from the placement and SPP to complete the Costa Fuego Prefeasibility Study (PFS), water supply business case study, and the environmental impact assessment. 

Funds will also be used towards ongoing exploration, drilling, and consolidation activities. 

Veritas Securities will be underwriting the SPP and is expected to close on 24 May 2024 at 5pm AWST. 

Australian-based explorer Rumble Resources (ASX:RTR) is also conducting a $4 million capital raising, comprising a $1 million placement and $2.9 million entitlement offer. 

The issue price is $0.04 per share and Wilsons Corporate Finance is the lead manager to the capital raising. 

Funds will enable the Rumble to advance its assets include the Earaheedy Zinc-Lead-Silver Project, the Western Gold Project, and the Wardawarra Lithium Project, as well as other early-stage gold, copper, and base metal assets. 

All of the projects lie in Western Australia. 

Meanwhile, gold, copper, and lithium explorer Artemis Resources (ASX:ARV) is conducting a placement to sophisticated and institutional investors to raise $2.87 million. 

Artemis, which has a market capitalisation of $27 million, says the issue price is $0.01275 per share, representing a 27% discount to the 15-day volume weighted average price. 

Funds will be used to conduct several exploration programs, including ground reconnaissance work to define lithium mineralised areas and build upon known pegmatites, as well as complete heritage clearances around the Mt Marie prospect. 

The company will also use funds to secure heritage clearances at Lulu Creek to conduct drilling which is expected to begin between July and August 2024, alongside a combination of induced polarisation surveys, electromagnetic surveys, and ground reconnaissance work. 

Subject to shareholder approval, Artemis will also issue one free attaching option for every two new shares with an exercise price of $0.025, expiring on 9 March 2026. 

Further, tungsten mining company EQ Resources (ASX:EQR) has received $2.17 million following approval of a Research and Development (R&D) tax refund. 

The refund is awarded for a range of eligible R&D activities undertaken during FY2023 at EQ’s Mt Carbine Tungsten Mine in Queensland. 

EQ, which has a market capitalisation of $94.79 million, says these activities included studies on reducing equipment wear and trials to improve feed preparation for the ore sorter plant. 

Other activities also included preparing work for increased capacity with testing of high-capacity and energy-efficient equipment. 

Write to Aaliyah Rogan at   

Images: Hot Chili
Author Image
Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.