Hillgrove Resources successfully completes $10 million capital raising

Hillgrove Resources Limited (ASX: $HGO) has successfully completed a $10.0 million capital raising through a two-tranche placement of new fully paid ordinary shares to institutional and sophisticated investors. The funds raised will be used for mine extension drilling down dip of existing lodes, drilling of other deposits within the mining lease, drill testing the significant Kanmantoo Deeps target, and general working capital purposes. Major shareholder Freepoint Metals & Concentrates LLC will subscribe for their pro-rata share in the Placement, equating to circa $2.0m.

Executive Commentary on Capital Raising and Exploration Plans

Hillgrove CEO and Managing Director, Lachlan Wallace, expressed, 'Following the commencement of copper production from the Kanmantoo underground, we are seeking to accelerate exploration at a number of our exciting targets with a view to both grow mine life and increase the annual throughput. This can have a material impact on the value of the Company and we want to push this ahead as quickly as possible. The $10.0m Placement facilitates this exploration growth and also provides working capital support to ramp up the underground mining to the planned steady state production rate. We have seen extraordinary success in our exploration efforts with 139 holes drilled for 163 significant intercepts of copper and gold. Kanmantoo is a predictable and structurally controlled system and as we drill more, we find more copper. We look forward to accelerating the drilling, with a view to growing the Resource and mine life, and increasing annual copper production.'

Summary of Capital Raising and Future Outlook

Hillgrove Resources has successfully secured a $10 million placement to fund mine extension drilling and general working capital purposes. The company's focus on accelerating exploration at various targets aims to grow the mine life and increase annual throughput. With recent positive drilling results and the commitment to ramp up underground mining, Hillgrove is poised to enhance its value and production. The company's ambitions include increasing the Resource and mine life, and boosting annual copper production. The $10 million placement is expected to support these goals and facilitate the planned steady state production rate.