Hot Chili raises $8.9 million to progress Chilean mining projects

By Trevor Hoey. Published at May 18, 2020, in Mining

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.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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