Broken Hill Mines Locks in $90M Raise to Fast-Track Centenary and Pinnacles
Key Takeaways
- Broken Hill Mines has executed a fully underwritten A$90 million capital raise comprising an A$85 million two-tranche placement priced at A$0.76 per share and a A$5 million share purchase plan at the same price.
- Placement demand exceeded the original funds sought, with the Company accepting a portion of oversubscriptions — a direct signal of strong institutional conviction in the Centenary and Pinnacles growth thesis.
- Eligible Australian and New Zealand shareholders on the 27 August 2026 record date can apply for up to A$30,000 at the same A$0.76 institutional price, with directors indicating they intend to participate in the SPP.
- A non-binding Letter of Intent with existing offtake partner Ausinmet Pte Ltd proposes a US$30 million working capital facility at SOFR plus 3.5% per annum, repaid against future zinc concentrate shipment proceeds — adding non-dilutive liquidity beyond the equity raise.
- Tranche Two (A$25 million, 32.6 million shares) requires shareholder approval at a General Meeting scheduled for 12 October 2026, introducing a near-term approval gate before full proceeds are secured.
Broken Hill Mines locks in fully underwritten A$90m raise to fast-track Centenary and Pinnacles
Broken Hill Mines (ASX: BHM) has executed a fully underwritten A$90 million capital raising on 28 August 2026, comprising an A$85 million two-tranche placement and a A$5 million share purchase plan. Proceeds will fund a Centenary production decline, accelerated resource drilling, infrastructure upgrades, and Pinnacles production growth and resource drilling. Placement demand exceeded original funds sought, with the Company accepting a portion of oversubscriptions and undertaking scaling—a signal of strong institutional endorsement. The announcement also disclosed a non-binding Letter of Intent with existing offtake partner Ausinmet Pte Ltd for expanded zinc concentrate offtake and a US$30 million (~A$42.5 million) working capital facility, providing additional liquidity beyond the equity raise. Fully underwritten structures deliver funding certainty; oversubscription signals institutional confidence in the growth thesis.
When big ASX news breaks, our subscribers know first
Inside the A$90 million offer
The placement priced at A$0.76 per Share, representing a 10.1% discount to the last closing price of A$0.845 on 25 August 2026 and a 6.3% discount to the 15-day volume weighted average price. The raise is structured across two tranches and a retail component:
- Tranche One: A$60 million issued under ASX Listing Rules 7.1 & 7.1A—79,232,095 Shares (47,539,257 under Rule 7.1; 31,692,838 under Rule 7.1A). Settlement is scheduled for 3 September 2026, with issue expected on or around 4 September 2026.
- Tranche Two: A$25 million subject to shareholder approval at a General Meeting on or around 12 October 2026—32,610,011 Shares. Settlement is scheduled for 16 October 2026, with issue expected on or around 19 October 2026.
New Placement and SPP shares rank equally with existing shares from the date of issue.
| Component | Amount | Price | Key Condition | Expected Issue Date |
|---|---|---|---|---|
| Tranche One Placement | A$60M | A$0.76 | ASX Listing Rules 7.1 & 7.1A | ~4 September 2026 |
| Tranche Two Placement | A$25M | A$0.76 | Shareholder approval at General Meeting | ~19 October 2026 |
| SPP | A$5M | A$0.76 | Fully underwritten | ~24 September 2026 |
SPP gives eligible shareholders a same-price entry
Eligible Australian and New Zealand shareholders (not in the United States) on the Record Date—5.00pm AEST, 27 August 2026—may apply for up to A$30,000 at the same A$0.76 price as the institutional placement. The SPP is fully underwritten up to A$5 million. In the event of a shortfall, the Underwriter will subscribe for the remaining shares following shareholder approval at the General Meeting. The Company reserves the right to scale applications or accept oversubscriptions at its sole discretion.
Directors have indicated they intend to participate in the SPP—a positive alignment signal for retail investors. The SPP offer booklet is expected to be released on or around 4 September 2026.
Patrick Walta, Executive Chairman
“We are delighted with the support for the Placement that provided the opportunity to introduce a number of highly credentialled local and offshore institutional investors to the register. The Placement received demand in excess of funds sought, with the Company accepting a portion of oversubscriptions and also undertaking scaling. I would also like to thank our existing investors for their ongoing support. We welcome the opportunity for existing eligible shareholders to participate in the capital raising through the SPP, at the same price as the Placement. 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.”
Expanded Ausinmet offtake and US$30m working capital facility
Broken Hill Mines and existing zinc concentrate offtake partner Ausinmet Pte Ltd signed a non-binding Letter of Intent dated 21 August 2026 for expanded offtake and a working capital facility. This builds upon the existing Zinc Concentrate Sales and Purchase Agreement dated 1 August 2024. The LOI provides a complementary funding stream beyond the equity raise, reflecting what the Company describes as “tight market conditions for zinc concentrates.”
Key proposed terms include:
- Offtake of up to 200,000 tonnes of Rasp Zinc Concentrates.
- Pricing based on the average London Metal Exchange (LME) cash settlement price for Special High Grade Zinc.
- Working Capital Facility of up to US$30 million, drawn at SOFR plus 3.5% per annum.
- Amortisation tied to a percentage of each Offtake shipment’s value.
The LOI is non-binding and indicative only. Definitive documentation must be agreed within 90 days (or such later date as the parties agree in writing). The Offtake and Working Capital Facility remain subject to satisfactory customary conditions, requisite third-party consents, and execution of definitive documentation. Until those conditions are met, the facility is not secured or finalised.
What this gives Broken Hill Mines is additional working capital to accelerate Centenary and Pinnacles growth without relying solely on equity dilution.
Why zinc concentrate offtake financing matters
An offtake-linked working capital facility is a financing structure where the buyer of a mine’s concentrate advances funding that is repaid against the value of future shipment proceeds. For a zinc producer like Broken Hill Mines, this is attractive because it provides non-dilutive working capital—the facility is secured against product the company is already committed to selling, at competitive rates in a tight zinc market. The structure avoids the need to issue additional shares to fund near-term working capital requirements, preserving existing shareholder equity. In this case, the proposed facility provides up to US$30 million in liquidity beyond the A$90 million equity raise, enabling the Company to accelerate growth projects at Centenary and Pinnacles without further dilution.
The next major ASX story will hit our subscribers first
What comes next for Broken Hill Mines
The indicative timetable for the raise and offtake facility is as follows:
- Tranche One settlement — 3 September 2026.
- SPP offer opens — on or around 4 September 2026; closes 16 September 2026.
- SPP results announced — on or before 23 September 2026.
- Commencement of trading of SPP shares — 24 September 2026.
- Despatch of holding statements for SPP shares — 25 September 2026.
- General Meeting — 12 October 2026 (approval for Tranche Two and SPP shortfall).
- Tranche Two settlement — 16 October 2026.
Definitive documentation for the Ausinmet offtake and financing facility is expected within 90 days of the 21 August 2026 Letter of Intent.
Petra Capital Pty Limited acted as Sole Lead Manager, Sole Bookrunner and Sole Underwriter to the Offer. Euroz Hartleys Limited acted as Co-Lead Manager, Blue Ocean Equities Pty Limited as Co-Manager, and Peloton Capital Pty Limited as Broker to the Placement. Clayton Utz is acting as legal adviser to the Company.
The timetable is indicative only and subject to change by the Company in its absolute discretion, in consultation with Petra and in compliance with ASX Listing Rules, the Corporations Act, and all other applicable laws. The combined equity raise and offtake financing structure positions Broken Hill Mines to accelerate Centenary and Pinnacles growth and, in Executive Chairman Patrick Walta’s framing, “unlock further value for our shareholders.”
Don’t Miss the Next ASX Mining Breakout
Join 30,000+ investors receiving FREE breaking ASX mining news within minutes of release, complete with expert analysis. Get real-time alerts on capital raises, resource updates, and production milestones the moment they hit the market. Click the “Free Alerts” button at Discovery Alert to stay ahead on ASX mining opportunities.