Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or the “Company”) is pleased to announce the launch of a Canadian secondary market Initial Public Offering (IPO), following lodgement of a preliminary prospectus with the Securities Commissions in the Provinces of Canada, other than Quebec.
The preliminary prospectus and associated IPO are key steps in Hot Chili’s application to dual list the Company on the TSX Venture Exchange (TSXV) and fund an ambitious phase of growth and development ahead of the Company’s transition into a future copper producer.
The preliminary prospectus contains an offering of new ordinary shares (Share or Shares) of the Company to raise funds from institutional investors in Canada, the USA and other jurisdictions outside of Australia (Offering). iA Capital Markets and Cormark Securities Inc. are acting as co-lead underwriters for the Offering (Underwriters).
The offering price and size will be determined between the Company and the Underwriters in the context of the market following shareholder resolution of a proposed fifty (50) to one (1) consolidation (Consolidation) at the Company’s General Meeting scheduled for November 15, 2021.
The proposed Consolidation will reduce the number of ordinary shares currently on issue from approximately 4.4 billion to 87.5 million and provide a more effective capital structure of the Company, and a more appropriate share price for a wider range of investors, particularly institutional investors.
If the Consolidation is approved, the ordinary shares of the Company would begin trading on the ASX on a post-consolidation basis on November 17, 2021, with pricing of the IPO to be determined after that point.
Net proceeds from the IPO are proposed to be used to upgrade the Cortadera Resource, advance the Costa Fuego Preliminary Feasibility Study (PFS), test several high-priority exploration targets and for general corporate purposes.
As previously announced, the Company intends to submit an application to list its Shares on the TSXV and has reserved the symbol “HCH”.
Listing will be subject to the Company fulfilling all of the initial listing requirements and conditions of the TSXV, and there is no assurance such a listing will be obtained. Closing of the IPO (Closing) is conditional upon the Shares from the IPO being approved for listing on the TSXV.
To access the announcement please click on the link below.:
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.
Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce the early exercise of its option to acquire a 100% interest in the Company’s world-class Cortadera copper-gold discovery in Chile.
The option agreement between Hot Chili and SCM Carola, the owners of the Cortadera landholding, was dually exercised in Santiago, Chile on Tuesday 21st September, following acknowledgement of receipt of the final instalment of US$15 million.
Hot Chili have now satisfied US$32 million in payments since February 2019 to acquire Cortadera, securing the centrepiece of the Company’s 724Mt Costa Fuego copper-gold development.
Since drilling began in April 2019, Cortadera has been transformed from a small private porphyry discovery into one of the world’s leading, large-scale, copper-gold discoveries – elevating Hot Chili into the senior ranks of global copper developers.
Hot Chili’s Managing Director Christian Easterday said the early acquisition of Cortadera was an important milestone for the Company.
“We are extremely pleased to move to full ownership of Cortadera almost one year ahead of schedule, given the success of our exploration to date.
“Cortadera is already one of the lowest-cost acquisitions in the copper sector and we believe it has a long way to grow.
“I would like to thank SCM Carola for their partnership to contribute Cortadera to our plan to build a major coastal copper production hub.
“Costa Fuego is set to provide significant benefit to the region and local township of Vallenar for many decades to come.
“Strong green credentials, including the ability to utilise sea water processing and access power from large nearby solar plants, are matched by its low-altitude setting and location next to existing port facilities and regional infrastructure.
“The project is shaping as a cutting-edge, new generation major copper development in the world’s largest copper producing country.”
To access the announcement please click on the link below.
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.
Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce that it is preparing to commence drilling a series of large-scale exploration targets in parallel with resource expansion drilling at its Costa Fuego copper-gold development hub in Chile.
Highlights
Advanced Three-Dimensional (3D) Geochemical targeting,using multielement surface geochemical data, has been applied for the first time across Hot Chili’s consolidated Costa Fuego copper-gold development hub in Chile The 3D geochemical approach generated probability models which accurately mirrored existing copper resource models at both Cortadera and Productora Two, large-scale, 3D geochemical targets have been identified as high probability for immediate drill testing– Productora Central and Santiago Z – both considered potential game changers for Costa Fuego’s growing resource base Both new 3D geochemical targets are larger in size than the main porphyry (Cuerpo 3) at the Company’s Cortadera copper-gold discovery, where three drill rigs are currently operating to upgrade its maiden 451Mt resource A fourth drill rig is being secured to commence exploration drilling at Productora Central in Q4 this year and regulatory approval for drilling at Santiago Z is expected in December. Next assay results from resource expansion drilling at Cortadera expected shortly To access the announcement please click on the link below.
Logging core at Cortadera View looking SE across Productora – New, large 3D geochemical target set to be drilled in Q4 this year
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.
Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to confirm the appointment of Glencore’s nominee, Mr Mark Jamieson, to the Board of Hot Chili.
Mr Jamieson is currently General Manager Resource Engineering for Glencore’s global copper asset group leading technical support and governance in geology, mine engineering and asset optimisation for development projects, operations and JV’s.
Mark’s appointment follows Glencore’s investment to acquire a 9.99% shareholding in Hot Chili through the Company’s recent A$40 million capital raising, as announced to the Australian Securities Exchange (ASX) on 6th August.
Mark brings 20+ years of technical and project experience in open pit and underground operations, including sub level and block cave mines with Newcrest, MMG and Barrick Gold across Australia, Africa, South East Asia and South America.
Mark holds a bachelor’s degree with honours in Geotechnical Engineering from RMIT University, and a Masters of Engineering Science in Mining Geomechanics from The University of New South Wales.
The Directors welcome Mark’s appointment and look forward to the addition of his strong skillset and experience to the Board of Hot Chili.
To access the announcement please click on the link below.
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.
Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) advises due to overwhelming support of the Company’s Share Purchase Plan (SPP) it has decided to close the SPP at 5.00pm today Thursday, 26 August 2021. The Company will apply the scale-back conditions accordingly as per the terms set out in the SPP prospectus dated 13 August 2021.
Applications for over $5 million have been received from eligible shareholders under the SPP.
Mr Christian Easterday, Managing Director of Hot Chili, said
“The Board of Hot Chili would like to thank all shareholders for participating in the SPP, which was oversubscribed in five days.
We look forward to delivering on our copper-gold resource growth pipeline in Chile to build long term shareholder value as we transition Hot Chili into a premier global copper developer”.
To access the announcement please click on the link below.
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.
Joining us for a conversation is Christian Easterday, the CEO of Hot Chili Limited (ASX: HCH | OTCQB: HHLKF). It’s a pleasure to be speaking with you sir, Hot Chili Limited is having, simply put, a banner year, as throughout the year it’s been one success after another as Hot Chili has released a string of successful press releases to advance the massive Cortadera Copper-Gold Project. Before we delve into the exciting news you have for current and prospective shareholders, Mr. Easterday, please introduce us to Hot Chili Limited and the opportunity the company presents to the market.
Christian Easterday:
Well, it’s been a very exciting time, not just in the copper space, but for Hot Chili, as we really transform ourselves from a corporate exploration company on the coastline of Chile to a full-fledged very significant copper developer and now very pleased to be welcoming Glencore as our largest shareholder through their participation in our recent $40 million capital raising, which was just announced during the week.
Christian Easterday:
None of this has been possible without the string of successes that we’ve had at a world-class Cortaderaporphyry discovery on the coastline, which has allowed us to consolidate a major copper development hub sitting on the Pan-American highway right next to a port 600 kilometers north of Santiago in Chile. We are certainly hitting our straps after announcing our maiden resource last year, where I did my last interview with you Maurice, we now have some three-quarters of a billion tonnes at about half a percent copper equivalent in open-pit and underground resource space.
Christian Easterday:
And that Cortadera discovery, which is one of only two major copper discoveries that the world has seen since 2014 is seeing some significant growth in our drilling. And we’ve been able to put out some further world-class intercepts as we expand that resource base, and look to take our combined asset to over a billion tons. And hopefully, we’ll be looking to put that out later in the year.
Maurice Jackson:
Sounds exciting, sir. You referenced the $40 million funding. Can you go through the details for us on this landmark transaction, along with your new strategic partner Glencore Resources?
Christian Easterday:
We have been very busy in staging the next steps for Hot Chili, as we seek to align ourselves with the rest of the copper porphyry developers in the America’s. Currently, we’re the only major copper porphyry player that is not listed on the TSX and TSX.V and we’re looking to, dual list, the company in the coming months over on the TSX.V in Canada. So, a very exciting time as we transform the company and look to align to a set of copper developers, which are seeing market capitalizations in the range of $500 million to $1.4 billion with some of the leaders over there in Canada being Filo Mining, Solaris, SolGold and several resources that they control, obviously Hot Chili’s resource bases is comparing extremely favorably.
Christian Easterday:
We see a real value gap that exists with the only non-TSX/TSX.V player in our peer space. The $40 million capital raising that we’ve just completed was well supported out of Australia and also overseas with significant support seen from North America. But most importantly, when we put that capital raising together, that was all about taking our last real key milestone, which is the purchase of Cortadera itself. We had one remaining payment that was due in one year of $15 million U.S. or roughly $20 million Australian. And the asset has grown so rapidly and was really sitting on a world-class discovery here that there was significant interest in taking out that final ownership payment, which we’ll be making immediately, and once we close this raising in the coming week or two. So that’s some color on the reason for the raising outside of the purchase of Cortadera, the rest of the money is going in to continue our aggressive resource growth drilling program.
Christian Easterday:
And also now to start stepping out and start testing some very exciting growth potential in what looks like an opportunity to unlock a cluster of high-grade porphyry targets in and around our two key assets at Productora and Cortadera. Part of this raising as you well said, we’ve now attracted the support of one of the largest mining companies in the world in Glencore. And they’re, as is being announced, they’re coming in now as a 9.99% shareholder in Hot Chili, which will make them the largest shareholder in Hot Chili. And we’ll be shortly welcoming their support with a board member coming on to Hot Chili’s board technical steering committee. This will allow us to tap in and utilize that strong capability and experience of Glencore in developing large-scale copper assets in jurisdictions, such as Chile.
Christian Easterday:
And I’m looking forward to the new relationship and our new large shareholder in Glencore. They’ve certainly given the company a significant endorsement of our assets. Effectively, the due diligence by the world has just been completed by one of the largest copper producers in the world, one of the largest mining companies in the world, and a really key aspect of that is where we’re looking forward to negotiating over the coming months, which is an off-take arrangement for the first eight years of our targeted 25 to 30-year mine life that we’re trying to build out on the coastline. That will be for about 60% of the off-take out of our combined Costa Fuego project. And we really look at that as a significant de-risker for the company in terms of actually having a partner there to take a benchmark component on the pricing of our offtake. We view this a strong hedging position. The company is putting in place with the largest global trader of copper concentrates. And now our largest shareholder.
Maurice Jackson:
Having Glencore as a strategic partner is a big, big feather in your cap and puts Hot Chili in the driver’s seat. I would say on the Autobahn, you’ve really, you’ve done several things here for shareholders. That, and again, just this off-take, it’s something that may be minor when you look at all the successes here, but that off-take agreement as well is just another strategic step. And it just demonstrates the business acumen and the leadership here. And I have to just give you a big kudos, sir. Switching gears, let’s look at some numbers. Please provide us the capital structure for Hot Chili Limited.
Christian Easterday:
Look at the moment. Our pre-capital structure was about 3.1 billion shares. We’ll come over the 4 billion mark after this raise, where we have about 1.1 billion shares that we’ll be issuing to Glencore and to other institutional investors. We’ve also been able to give the shareholders a Hot Chili, a slice of the capital rising at 3.2 cents. And I suppose that’s sort of something really important from the board that we wanted all of the shareholders to be able to participate at the same level of investment that Glencore and the institutional investors are coming in at. And that’s certainly seen a very good response day one, day two, day three in the market over here in Australia. We’ve not just a raising that an 11% discount to our closing price pre capital rising, but we’ve been able to get the stock to have a very positive lift after that announcement.
Christian Easterday:
We’re trading at around 40% or 50% higher than the issue price for the rising. We are very pleased to be able to allow all of our shareholders to participate in a share purchase plan. We now have a firm opportunity to rewrite Hot Chili into the billion-dollar-plus market capitalization space. And we believe that we can do that in short order, particularly with our realignment now, and being able to take Hot Chili into the North American market with a dual listing on the TSX/TSX.V and to be able to compare ourselves very favorably with some of the names I’ve mentioned, the Oracles, the Filos, the Solaris’, which have seen spectacular increases in their share prices in association with the lifting copper price environment.
Christian Easterday:
When you have a copper price environment over $4 per pound, and you have an upper-tier copper asset that is rapidly approaching a tier-one asset, and there’s very few of those available in the world to be able to leverage that value and to be able to come into a dual listing and now with Glencore on our register. We believe that we have a significant rewrite ahead of the company. And now the ability in the market’s eyes to be able to execute and transition Hot Chili into a large scale or major copper producer.
Maurice Jackson:
In closing, sir, what would you like to say to shareholders?
Christian Easterday:
I’d like to thank all of our shareholders for ensuring that Hot Chili was one of the survivors of the last downturn in copper, to support our vision, to build out a new copper player of substance globally with the project that we’re positioning in the plus 100,000 tonne per annum, copper production space. Very few of those available in a world where there’s very few major copper discoveries being made.
Christian Easterday:
Now our shareholders, undoubtedly, will start to reap the rewards of what has been a 13 year vision by myself and our founders to build out something that you don’t see very often. And the last time the Australian stock market had anything in this space was, of course, Equinox resources. And we all know knew that a real key element in the rewrite of that company from a $400 million company to a $7.2 billion takeover was their ability to be able to transition into production. And most importantly was to be able to position Equinox into the north American markets at the right time.
Christian Easterday:
They did that in the last copper cycle, and they were able to extract that significant rewrite in valuation. And we were simply following a very well-worn path that has already been done before.
Maurice Jackson:
Last question, sir, what did I forget to ask?
Christian Easterday:
I’m sure we’ll have plenty of time for further questions down the road, Maurice. We’ve got some pretty exciting drilling results coming out of our expansion program that we’ll now be able to start getting out to market now that I’m out of a blackout period following about four or five weeks of no sleep completing the transaction that we’ve just announced.
Christian Easterday:
But most importantly, we’ve got a lot of very exciting news flow in the lead up to our dual listing in the TSX.V, which is scheduled for around late October, and then shortly to follow that hopefully a significant upgrade at our Cortadera porphyry discovery and Chili.
Maurice Jackson:
Mr. Easterday, it’s been an absolute delight to speak with you today, wishing you and Hot Chili Limited the absolute best, sir.
And as a reminder, I am a licensed representative to buy and sell precious metals through Miles Franklin Precious Metals Investments, where we have several options to expand your precious metals portfolio, from physical delivery of gold, silver, platinum, palladium, and rhodium, to offshore depositories, and precious metals IRA’s. Give me a call at 855.505.1900 or you may email: Maurice@MilesFranklin.com. Finally, please subscribe to www.provenandprobable.com, where we provide: Mining Insights and Bullion Sales, subscription is free.
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.”
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
CNN Chile featured Hot Chili in a recent story about the Company’s exploration activity in the country, including their discovery of copper and gold at the Cortadera Project. Learn more about Hot Chili: https://www.hotchili.net.au/ ASX: HCH OTCQB: HHLKF
Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce its intention to list in Canada on the TSX Venture Exchange (TSXV) by end of 2021.
Hot Chili’s move to dual list in Canada is a key step toward the future funding and development of the Company’s large-scale Costa Fuego copper-gold project in Chile.
The Company has paid application fees, appointed legal advisors and commenced the formal application process for dual listing.
The Canadian market has a proven track record in supporting large-scale exploration and development companies in the copper and gold space with the transformative dual listings from Equinox Minerals (C$7.3Bn takeover by Barrick Gold Corp) and Andean Resources Limited (C$3.6Bn takeover by Goldcorp Inc) the stand-outs.
Costa Fuego’s current resource stands at 724Mt grading 0.48% CuEq for 3.5Mt CuEq metal (2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64kt molybdenum). Continued drilling success at the Company’s flagship Cortadera porphyry discovery looks set to deliver another significant resource upgrade this year.
A TSXV dual listing would position Hot Chili favourably amongst its Canadian peers which trade at significantly higher valuation multiples and who control the other leading copper developments in South America such as Marimaca Copper Corp. (Chile, TSXV:MARI), Filo Mining Corp. (Argentina, TSXV:FIL), Solaris Resources Inc (Ecuador, TSX: SLS), Josemaria Resources Inc. (Chile, TSX: JOSE) and SolGold Plc (Ecuador, TSX: SOLG).
The Directors look forward to announcing key advisory appointments in relation to its TSXV dual listing process. A listing on the TSXV is subject to all necessary approvals of the TSXV, and there can be no guarantee that Hot Chili will be accepted for listing pending completion of the application process.
Further news flow is expected shortly, with three drill rigs in operation, pre-feasibility studies underway and multiple exploration programmes advancing across the Company’s Cortadera and Santiago Z coastal copper projects.
This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Christian Easterday Managing Director Tel: +618 9315 9009
Figure 1 Location of Cortadera and Productora in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago
Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants
* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.** Reported on a 100% Basis – combining Cortadera and Productora Mineral Resources using a +0.25% CuEq reporting cut-off grade
Qualifying Statements
Independent JORC Code Costa Fuego Combined Mineral Resource (Reported 12th October 2020)
Reported at or above 0.25% CuEq*. Figures in the above table are rounded, reported to appropriate significant figures, and reported in accordance with the JORC Code – Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Metal rounded to nearest thousand, or if less, to the nearest hundred. * * Copper Equivalent (CuEq) reported for the resource were calculated using the following formula:: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.
** Note: Silver (Ag) is only present within the Cortadera Mineral Resource estimate
Competent Person’s Statement- Exploration Results Exploration information in this Announcement is based upon work compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Competent Person’s Statement- Productora Mineral Resources The information in this Announcement that relates to the Productora Project Mineral Resources, is based on information compiled by Mr N Ingvar Kirchner. Mr Kirchner is employed by AMC Consultants (AMC). AMC has been engaged on a fee for service basis to provide independent technical advice and final audit for the Productora Project Mineral Resource estimates. Mr Kirchner is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Member of the Australian Institute of Geoscientists (AIG). Mr Kirchner has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code 2012). Mr Kirchner consents to the inclusion in this report of the matters based on the source information in the form and context in which it appears.
Competent Person’s Statement- Cortadera and Costa Fuego Mineral Resources The information in this report that relates to Mineral Resources for the Cortadera and combined Costa Fuego Project is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist of Wood, who was engaged by Hot Chili Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.
Reporting of Copper Equivalent Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1 % per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.
Forward Looking Statements This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.
The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person
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