Why Freehill Mining (ASX:FHS) is raising up to about A$1.2 million after reporting record September sales

Sonal Goyal

15 October 2026 10:45 PM AEDT

Why Freehill Mining (ASX:FHS) is raising up to about A$1.2 million after reporting record September sales

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Freehill announced a $600,000 Placement of 600,000,000 shares at 0.1 cent per share and a 1 for 6.7 non-underwritten entitlement offer of up to about $606,943.
Gross sales for September 2026 were $506,121, which the company describes as a record month.
The entitlement offer opens on 23 October 2026 and closes at 5pm on 13 November 2026, unless extended.

Capital raising

Freehill Mining Limited (ASX:FHS) announced on 15 October 2026 a two-part Capital raising at a price of 0.1 cent ($0.001) per share. The first part is a placement of 600,000,000 fully paid ordinary shares to a single sophisticated investor, raising $600,000. The company says the shares will be issued under its available placement capacity under ASX Listing Rule 7.1, and the announcement does not mention Shareholder approval. Completion is expected on or about 21 October 2026, with Quotation anticipated the following Business day.

The second part is a pro rata, non-renounceable entitlement offer on a 1 for 6.7 basis, for up to roughly 606,943,323 new shares and up to $606,943 before costs. If both parts are fully subscribed, the combined gross proceeds would be about $1.21 million, a total calculated here from the company's two figures. The company states the entitlement offer will not be underwritten, so the amount raised depends on how many eligible shareholders participate.

Who can take part

Eligible shareholders are those with registered addresses in Australia and New Zealand. Those who take up their entitlement in full may also apply for additional new shares. Chairman Ben Jarvis and Executive Director Paul Davies have said they intend to take up their full entitlements.

Use of funds

The company says proceeds will go towards capital improvements, Capital Expenditure on trucks and plant, and permitting for the Blanco y Negro project. The use of funds also covers land purchase, an electricity connection and general working capital.

Record September sales

Alongside the raising, Freehill reported gross sales of $506,121 for September 2026, which it describes as a record month. The announcement's headline rounds this to $506,000. Monthly sales rose through the quarter, from $329,422 in July to $457,162 in August. By site, the company reports September sales of $361,156 from Islón and $144,965 from Yerbas Buenas.

The company said July was affected by extreme weather and August was a recovery month. It attributes the September result to forward sales, a wider product mix, a growing customer base and improved margins, and says input costs fell through refined operations and logistics. September sales were converted at 656 Chilean pesos per Australian dollar, against 610 pesos for July and August, so the peso's movement reduced the Australian dollar value of September sales.

Plant upgrade and Blanco y Negro

The company expects an upgrade at its Islón plant to be completed by the end of October 2026, with benefits from November 2026. The upgrade adds a second VSI crusher, a three-deck screen, new and redeployed conveyors and a larger feed hopper, and is intended to restore 13 mm gravel production and add 20 mm gravel and dry industrial sand. Management expects gross sales to keep rising from current levels with further Margin improvement, which is a forward-looking statement and not a result.

Freehill plans to submit a mine plan for Blanco y Negro to Chile's regulator, Sernageomin, by the end of October 2026. The announcement describes a JORC 2012 resource of about 1.5 million tonnes at 1.4 per cent copper and 0.5 grams per tonne gold, for 20,000 tonnes of copper and 24,000 ounces of gold.

Timetable and risks

The indicative timetable, in Sydney time and subject to change, has an ex-date of 19 October 2026 and a Record Date of 20 October. Offer documents are due to be dispatched and the offer to open on 23 October, closing at 5pm on 13 November 2026, unless extended. Results and any shortfall are to be notified on 18 November, new shares issued on 20 November and normal trading expected from 23 November, subject to quotation.

Because the offer is not underwritten, the final proceeds are uncertain, and the plant upgrade and permit submission are planned events that have yet to occur.

FAQs

Q: How is Freehill raising capital?

A: In two parts at 0.1 cent per share: a placement of 600,000,000 shares to a single sophisticated investor raising $600,000, and a pro rata, non-renounceable entitlement offer on a 1 for 6.7 basis for up to roughly 606,943,323 shares. The entitlement offer will not be underwritten.

Q: What will the proceeds be used for?

A: The company says proceeds will go towards capital improvements, capital expenditure on trucks and plant, permitting for the Blanco y Negro project, land purchase, an electricity connection and general working capital.

Q: What did the sales update show?

A: Gross sales were $506,121 in September 2026, up from $329,422 in July and $457,162 in August. The company expects an upgrade at its Islón plant to be completed by the end of October 2026, with benefits from November 2026.

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