By Adriano Marchese
Filo Mining Corp. shares rose in early trading on Monday after it said that mining giant BHP Group Ltd. will invest 100 million Canadian dollars, roughly US$78.7 million, in the company.
At 9:36 a.m. ET, shares were up 7.6% at C$15.38.
The Canadian mining company said that it will issue 6.3 million shares at a price of C$15.95 apiece. On Friday, the stock closed at C$14.30.
At the closing of the private placement, BHP will own around 5% of Filo Mining's issued and outstanding common shares.
The company said it will use the investment funds to support the drilling program at Filo del Sol in Chile.
"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," President and Chief Executive Officer Jamie Beck said.
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(END) Dow Jones Newswires