Broken Hill Mines Limited has executed a fully underwritten A$90 million capital raising and signed a non-binding letter of intent with its current zinc offtake partner Ausinmet Pte Ltd for an expanded offtake agreement and a US$30 million working capital facility.

The A$90 million funding package comprises an A$85 million two-tranche placement and an A$5 million share purchase plan, all priced at A$0.76 per share. Petra Capital acted as sole lead manager, bookrunner, and underwriter to the offer. Tranche One involves an A$60 million placement utilizing existing placement capacity, with settlement expected on 3 September 2026. Tranche Two covers an additional A$25 million subject to shareholder approval at a general meeting scheduled for around 12 October 2026. Eligible shareholders can also participate in the fully underwritten share purchase plan up to A$30,000.

Proceeds from the capital raising will be directed toward a Centenary production decline, accelerated resource drilling, infrastructure upgrades, and Pinnacles production growth and resource drilling. Broken Hill Mines operates a hub-and-spoke model to supply multiple ore feeds from the Pinnacles and Western Min operations to feed its 750,000-tonne-per-annum Rasp processing plant. The Centenary Zone is a key target area for the production decline and resource drilling, following wide, high-grade silver, lead, and zinc mineralisation intersected there in July 2026.

“The demand for the Placement highlights the significant opportunity that Centenary and Pinnacles Underground growth projects present for BHM. Funds raised from the capital raising will allow us to continue to advance these projects and unlock further value for our shareholders.” 

— Patrick Walta, Executive Chairman

The proposed offtake and financing terms with Ausinmet build upon an existing sales and purchase agreement from August 2024. The non-binding letter of intent covers up to 200,000 tonnes of Rasp zinc concentrates with pricing based on the average London Metal Exchange cash settlement price for Special High Grade Zinc. The associated working capital facility carries an interest rate of the Secured Overnight Financing Rate plus 3.5% per annum, with amortisation tied to the value of each delivered shipment. Both parties are required to agree on definitive documentation within 90 days of the 21 August 2026 letter of intent.

Elsewhere in the surrounding district, Kingfisher Mining Ltd reported drill results intersecting 9 metres at 8.05 percent combined lead and zinc with 17.9 grams per tonne silver at the Allendale project in August 2026, where Broken Hill Mines holds a 25 percent interest.

Read the full announcement: BHM Executes Fully Underwritten A$90m Capital Raising