Why Freehill Mining (ASX:FHS) is raising fresh capital while its Chilean aggregates sales build

Sonal Goyal

16 October 2026 11:15 PM AEDT

Why Freehill Mining (ASX:FHS) is raising fresh capital while its Chilean aggregates sales build

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Key Highlights

Freehill Mining reported FY2026 Revenue of A$2.69 million, up from A$2.13 million, and a record A$1.36 million of aggregate sales in the June 2026 quarter.
Cash was A$157,821 at 30 June 2026, and the auditor flagged a material uncertainty over the company's ability to continue as a going concern.
On 15 October 2026 the company announced an A$600,000 Placement and an entitlement offer of up to A$606,943, both priced at A$0.001 per share.

Freehill Mining (ASX:FHS) is a Melbourne-headquartered company whose operating Business supplies aggregates and construction materials in Chile's Coquimbo region, alongside a copper-gold project it aims to bring into small-scale production. On 15 October 2026 it announced a combined placement and entitlement offer at an issue price of A$0.001 per share.

What Freehill does and its stage

Freehill's FY2026 annual report, dated 30 September 2026, states that it produces aggregates and construction materials at the Islon and Yerbas Buenas sites in Chile's Region IV. Its lead development asset is the Blanco y Negro copper-gold project, held under option, where the company reports a resource of about 1.5 million tonnes at 1.4 per cent copper and 0.5 grams per tonne gold. That makes Freehill a small producer of bulk materials with a development option, rather than a conventional explorer.

Recent developments

FY2026 revenue was A$2.69 million, compared with A$2.13 million a year earlier, and mostly comprised mining sales of A$2.66 million. The company reported record aggregate sales of A$1.36 million in the June 2026 quarter. According to the annual report, a flood in the Coquimbo region in July briefly halted operations. In August 2026 Freehill appointed a mining engineer to lead mine planning and permitting for a small-scale Blanco y Negro operation, and described a submission to Chile's regulator, Sernageomin, as nearly complete.

On 9 July 2026 the company signed a non-binding memorandum of understanding with ASX-listed Austral Gold to jointly evaluate the Joshua and Blanco y Negro projects. The Annual Report discloses that Freehill chairman Ben Jarvis is also a non-executive director of Austral Gold. Being non-binding, the MOU does not commit either party to a transaction.

Cash, losses and the new raising

The annual report shows an after-tax loss of A$1.40 million (A$0.80 million a year earlier), an operating cash outflow of A$1.59 million and cash of A$157,821 at 30 June 2026, down from A$562,670. The auditor's report notes a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. The directors point to sales growth, a new crusher, a broader customer base, a possible Blanco y Negro approval and access to Equity markets in support of the going-concern basis. Earlier placements raised A$540,000 in October 2025 and A$1.5 million in March 2026.

The 15 October announcement comprises an A$600,000 placement of 600 million shares at A$0.001 to a single sophisticated investor under existing placement capacity, due to complete around 21 October. It also includes a non-renounceable, non-underwritten entitlement offer of one new share for every 6.7 held at the same price, raising up to A$606,943 through the issue of up to about 607 million shares. The offer opens on 23 October and closes on 13 November, with new shares expected to begin trading on 23 November. Chairman Ben Jarvis and director Paul Davies said they intend to take up their entitlements.

Funds are earmarked for capital improvements, trucks and plant, Blanco y Negro permitting, land and electricity connection, and working capital, although amounts have not been allocated to each. The placement alone adds about 15 per cent to a share count of around 4.07 billion, and holders who do not participate in the entitlement offer will be diluted further.

The Bottomline

Freehill's sales depend on local construction activity and weather, and the business remains small. Permitting at Blanco y Negro, the terms of its option over that project and continuing funding requirements are the other factors to follow as the entitlement offer runs through November.

FAQs

Q:What does Freehill Mining do?

A:Freehill produces aggregates and construction materials at the Islon and Yerbas Buenas sites in Chile's Region IV and holds the Blanco y Negro copper-gold project under option.

Q:What capital raising did Freehill announce on 15 October 2026?

A:An A$600,000 placement of 600 million shares at A$0.001 to a single sophisticated investor, plus a one-for-6.7 non-renounceable entitlement offer at the same price raising up to A$606,943.

Q:What was Freehill's financial position for FY2026?

A:The annual report shows revenue of A$2.69 million, an after-tax loss of A$1.40 million and cash of A$157,821 at 30 June 2026, with the auditor noting a material going-concern uncertainty.

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