Hot Chili arranges $5.0M placement following strong copper-gold porphyry results

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    Hot Chili Ltd, the Australian ASX-listed mineral exploration company with a number of copper projects on the coast of Chile, has announced a $5 million placement at 3 cents a share.

    Funds from the placement will be used towards a US$2 million part- payment for the first instalment of the Carola Option Agreement and for general working capital requirements.

    The US$2 million payment to SCM Carola will be the first instalment towards the acquisition of a 100% interest in the Cortadera copper-gold porphyry discovery located 14km from the Hot Chili’s Productora copper development along the coastal range of Chile.

    The placement follows on from the impressive diamond drill results released by Hot Chili on the 20th June, which included stand-out copper-gold porphyry drill results – recording 622m grading 0.6% copper and 0.2g/t gold from 204m down hole depth (CRP0013D). This included a new high grade zone comprising 188m grading 0.9% copper and 0.4g/t gold from 516m down-hole depth across the main porphyry at Cortadera.

    Hot Chili's Cortadera copper-gold porphyry
    Hot Chili's Cortadera copper-gold porphyry

    Speaking about their recent drilling results at Cortedera, Hot Chili’s MD, Christian Easterday, said they have achieved an excellent outcome from the first confirmation and extensional drill program.

    “Drilling by Hot Chili has uncovered the beginnings of a new bulk tonnage high grade zone of copper and gold, completely changing the scale and potential pedigree of the Cortadera discovery.”

    Funds from the Placement will allow the Company to focus on preparations to re-commence drilling of the new high grade zone discovered at Cuerpo 3, the largest porphyry of the four porphyry centres discovered to date at Cortadera.

    In addition, the Company is focused on advancing strategic funding discussions with key stakeholders in relation to the proposed Carola transaction.

    Details of the Placement

    The Placement will be undertaken in two tranches:
    • The first tranche of 150,000,000 new shares, will not be subject to shareholder approval and will fall within the Company’s 15% placement capacity under ASX Listing Rule 7.1 (“Tranche 1 Placement”)
    • The second tranche of 16,666,667 new shares to related parties will be conditional upon shareholder approval, and will apply to shares subscribed by Blue Spec Drilling Pty Ltd (an entity associated with Hot Chili’s chairman Murray Black) (“Tranche 2 Placement”).

    Following the issue of the Tranche 1 Placement shares, the Company’s remaining placement capacity under listing rule 7.1 will be 17,911,152 ordinary securities.

    Each new share will be issued at a price of 3 cents.

    Shares issued under the Tranche 1 Placement will be fully paid ordinary shares in the Company and will rank equally with shares currently on issue.

    Settlement and allotment of the Tranche 1 Placement shares is expected to occur on or around Friday 5th July 2019.

    Hot Chili will convene a general meeting of shareholders to approve the issue of the Tranche 2 Placement shares as soon as possible. The general meeting is expected to take place on or around Friday 16th August 2019, with the issue of the Tranche 2 Placement shares expected to take place shortly after the meeting, subject to shareholder approval.

    About Hot Chili Limited

    Find out more at https://www.hotchili.net.au

    Hot Chili (HCH) is an ASX-listed Australian mineral exploration company, well advanced in developing its portfolio of copper projects on the coastal range in Region III, Chile.

    Since listing on the ASX in 2010, the Company has successfully discovered and delineated the Productora copper deposit, established a substantial Mineral Resource and Ore Reserve, and completed a JORC 2012 Compliant Pre-feasibility study.

    The Company continues to assess value accretive opportunities, and is very pleased to have secured an option to acquire a 100% interest in a major, privately-owned, copper-gold porphyry discovery, named Cortadera, adjoining the Company’s Productora and El Fuego copper projects, located on the Chilean coastal range.

    Hot Chili is partnered with Chile’s largest iron ore miner, Minera del Pacíico S.A. (CMP), who own 20% of the Productora project, and their parent Company CAP SA are also major shareholders in the Company.

    Disclaimer
    MiningIR host a variety of articles from a range of sources, our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.

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