Hot Chili Limited (ASX: HCH | TSXV: HCH | OTCQX: HHLKF) has announced that it has closed its previously announced transaction with Osisko Gold Royalties Ltd. This is pursuant to which Hot Chili receiving US$15M in exchange for the sale of a 1.0% net smelter return (NSR) royalty on copper and a 3% NSR royalty on gold.
“We are very pleased to have closed the investment with Osisko Gold Royalties enabling the company to advance the project without the dilution of a share issuance,” commented Hot Chili’s managing director Christian Easterday.
“Costa Fuego is globally relevant, being one of only a handful of projects with potential to deliver near-term, meaningful, new copper supply into a looming global copper supply shortage.”
The Costa Fuego Copper Project is the consolidation of the Cortadera porphyry copper-gold deposit and the Productora copper-gold deposit, set 14 km apart in a low altitude, coastal range of Chile.
The investment by Osisko has strengthened the company’s current cash position to approximately A$26M, demonstrated strong look-through value of the project’s economics and provided another significant endorsement of Hot Chili’s Costa Fuego project from one of North America’s leading royalty-streaming groups.
The company is now well funded to deliver the next steps in its growth and development plan. This includes the commencement of a 30,000m drill programme, completion of Costa Fuego resource upgrade by late 2023, and delivery of the Costa Fuego pre-feasibility study (PFS) in H2 2024.
Hot Chili has already considerably advanced its PFS (approximately 80% complete) with minimal expenditure required for completion.
For further information, please visit: www.hotchili.net.au
