Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce a strategic investment by Glencore to acquire a 9.99% interest in Hot Chili.
The Glencore investment is a positive endorsement of the Company’s Costa Fuego copper-gold project as it progresses to become a globally significant, low-altitude development.
The Company has entered into a binding agreement with Glencore for a A$14.4 million strategic investment to acquire a 9.99% interest in Hot Chili. Glencore is one of the largest natural resource companies in the world, providing strong support for the completion of a feasibility study and development of Cost Fuego.
Glencore will have the right to appoint a Director to the Board of Hot Chili, and the right to appoint members to a Technical Steering Committee to advise on operational matters. Furthermore, the Company undertakes to grant Glencore offtake agreements over 60% of concentrate produced for a period of 8 years from commercial production on arms-length commercially competitive benchmark terms. These rights are subject to Glencore holding at least 7.5% of the share capital of Hot Chili, except where Glencore did not have the opportunity to participate in a dilution event.
The addition of Glencore as a strategic investor will allow the Company to draw on Glencore’s expertise in project development and production.
Commenting on the strategic investment, the Managing Director of Hot Chili Mr Christian Easterday said:
“Hot Chili welcomes the strategic alignment with Glencore, especially as the Company moves toward a dual listing on the TSX Venture exchange by the end of 2021.”
“We view this as a significant milestone event and a strong endorsement by Glencore.”
“We believe Glencore will make an excellent partner in the development of Costa Fuego and are a testament to Hot Chili’s staff and consultants who are working tirelessly to transition Hot Chili into a Tier-1 copper developer.”
To access the announcement please click on the link below.Download full announcement here
Cortadera Copper Project
Cortadera’s maiden Mineral Resource positions Hot Chili with the largest copper Mineral Resource and one of the largest gold Mineral Resources for an ASX-listed emerging company.
The Cortadera maiden Mineral Resource of 451Mt at 0.46% copper equivalent (CuEq) takes the total Mineral Resource estimate for Costa Fuego (Cortadera, Productora & El Fuego) to 724Mt at 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz Silver and 64kt molybdenum. Cortadera also contains a higher grade component of 104Mt at 0.74% CuEq, and this has strong potential to continue growing rapidly with further drilling.View the Cortadera Project