Hot Chili raises $8.9 million to progress Chilean mining projects
Hot Chili Limited (ASX:HCH) has arranged a $5 million private placement to sophisticated and professional investors through the issue of shares at 1.5 cents per share and a 1 for 2 unlisted option exercisable at 2.5 cents, expiring May 20, 2022.
In parallel, the company also announced a $3.9 million non-renounceable entitlements offer of new shares on a 3 for 20 basis, at an issue price of 1.5 cents per share and a 1 for 2 unlisted option exercisable at 2.5 cents, also expiring on May 20, 2022.
The Rights Issue will provide an opportunity for all eligible shareholders to participate in the capital raising on the same basis and pricing as the placement.
Importantly, the placement removes near-term funding uncertainty and provides a pathway to delivering several transformational catalysts over the coming months.
These include a 12-month extension of the remaining payment schedule for the 100% acquisition of the Cortadera copper-gold project in Chile.
Recommencement of drilling at Cortadera
The funding will also allow recommencement of drilling at Cortadera, as well as the first resource estimates for it and the San Antonio copper-gold projects.
Management also expects to complete metallurgical test work and a preliminary economic assessment.
With these boxes ticked, the company will look to execute a formal lease mining and processing agreement with the Chilean government agency (ENAMI) which will facilitate mining and processing at Hot Chili’s Productora copper project.
Hot Chili had significant exploration success as it undertook an aggressive drilling campaign in 2019, suggesting the prospect of establishing a new and expanded combined development plan in 2020 will be much anticipated.