ASX-listed Broken Hill Mines (BHM) has secured firm commitments to raise A$38.5-million through a share placement aimed at accelerating growth initiatives across its Rasp and Pinnacles operations in New South Wales.

The placement, priced at A$1.00 a share, represents a 5.7% discount to the company’s last closing price of A$1.06 and a 1.6% discount to the ten-day volume-weighted average price.

BHM reported strong support from a select group of Australian and international institutional and sophisticated investors, following a well-subscribed bookbuild process.

Executive chairperson Patrick Walta said in a statement that the funds would be used to fast-track expansion programmes and unlock additional processing capacity at the Rasp plant.

“BHM is excited to undertake this capital raise, with the funds to be allocated toward acceleration of growth initiatives across our Rasp Mine operations and high-grade Pinnacles Mine development project,” Walta commented.

“Now is the optimal time to be investing in growth and increasing this production base. The BHM team thanks all shareholders for their continuing support and welcomes new shareholders to the company.”

Proceeds from the placement will support a 17 000 m drilling campaign at Rasp to expand the Main Lode resource and improve ore production, and a 25 000 m exploration programme at Pinnacles targeting high-priority areas including Rope shaft, Junction, Perseverance, Consols and Fishers.

The company will also advance openpit development at Pinnacles, with early works and infrastructure upgrades designed to enable mine restart in the first half of 2026.

Further, BHM plans to unlock the full 750 000 t/y capacity of the Rasp processing plant by constructing a tailings dewatering facility, which will remove reliance on solar drying and enable nameplate throughput.

Settlement of the placement is expected on October 29, with allotment to follow on October 30, while BHM’s shares are set to resume trading on the ASX on October 22.