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Source: Hot Chili
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  • Hot Chili (HCH) announces the final prospectus has been filed as part of its application to list on the TSX Venture Exchange (TSXV)
  • The copper-gold developer says this marks an important step in progressing its position as a dual-lister as well as the closing of its IPO on the TSXV
  • The IPO is expected to raise a total of CAD$33.79 million (A$36.76 million) via the placement and the underwriters’ exercising their over-allotment options
  • Hot Chili is using the money to upgrade the Cortadera resource, advance the Costa Fuego project preliminary feasibility study, and test exploration targets
  • Company shares have been trading down 3.54 per cent to trade at $1.64

Hot Chili (HCH) has announced the final prospectus has been filed as part of its application to list on the TSX Venture Exchange (TSXV).

The company was notified of the final prospectus being filed by the securities regulatory authorities in the provinces of Canada, excluding Quebec.

Hot Chili said this was an important step in progressing its position as a dual-lister as well as the closing of its initial public offering (IPO) on the TSXV.

The copper-gold developer plans to raise CAD$30 million (A$32.6 million) through the IPO which will issue around 21.6 million shares at CAD$1.55 (A$1.69) per share.

The placement comes with one free-attaching warrant, exercisable at CAD$2.50 (A$2.72) for every two shares issued with a term of two years.

In addition, the underwriters (IA Capital Markets and Cormark Securities Inc. of Canada) were granted an over-allotment option to purchase up to an additional 2.45 million units which are exercisable for 30 days after the closing date. This will raise up to an extra CAD$3.8 million (A$4.1 million).

In total, the placement is expected to raise gross proceeds of CAD$33.79 million (A$36.76 million).

Hot Chili’s major shareholder Glencore is participating in the increased offering to maintain a 9.99 per cent shareholding interest.

Managing Director Christian Easterday was pleased to be progressing the dual-listing and IPO.

“We welcome the support of North American institutions and Glencore in the increased offering, and look forward to satisfying all remaining typical conditions for our TSXV listing shortly, and commencing trading following closing.”

Hot Chili will use the money raised to upgrade the Cortadera discovery’s resource, advance the Costa Fuego project preliminary feasibility study, and test several high-priority exploration targets.

The IPO is expected to close on December 22.

Company shares were down 3.54 per cent to trade at $1.64 at 12:10 pm AEDT.

HCH by the numbers
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