Join our daily newsletter At The Bell to receive exclusive market insights
- Hot Chili (HCH) is nearing the completion of the 100 per cent acquisition of the Cortadera copper-gold discovery in Chile
- The company first announced its intention to acquire Cortadera in February 2019 as it would allow it to develop bulk tonnage deposits within a central area
- Pleasingly, it only lies 14 kilometres from its flagship Productora copper project
- To acquire the 100 per cent, Hot Chili has to pay US$30 million (around A$39.1 million), which is payable in three instalments over a 30-month period
- The company has already paid US$17 million (roughly A$22.1 million) with the remaining US$15 million (roughly A$19.5 million) due in mid-July, 2022
- Hot Chili is up 5.71 per cent on the back of this news with shares trading at 3.7 cents
Hot Chili (HCH) is nearing the completion of the 100 per cent acquisition of the Cortadera copper-gold discovery in Chile.
The company first announced its intention to acquire Cortadera in February 2019 as it would allow it to develop bulk tonnage deposits within a central area.
Cortadera lies 14 kilometres southeast of Hot Chili’s flagship Productora copper project and mineralisation remains open at depth and along strike.
Additionally, it has a maiden mineral resource of 451 million tonnes at 0.46 per cent copper equivalent including a higher grade of 104 million tonnes at 0.74 per cent copper equivalent.
To acquire the 100 per cent, Hot Chili has to pay US$30 million (around A$39.1 million), which is payable in three instalments over a 30-month period.
Hot Chili recently paid US$10 million (around A$13 million) to private Chilean mining group, SCM Carola, bringing total payments to US$17 million (roughly A$22.1 million).
This US$10 million payment was due in July this year, however, this early payment gives HCH 18 months to focus on the growth of Cortadera’s maiden resource.
The company now has a remaining payment of US$15 million (roughly A$19.5 million) which is due in mid-July, 2022.
“In less that two years we have transformed Cortadera from a small privately-held discovery in Chile to a leading global copper resource,” Managing Director Christian Easterday said.
“I look forward to a very exciting year ahead for our shareholders as we take Cortadera to the next level,” he added.
Hot Chili is up 5.71 per cent on the back of this news with shares trading at 3.7 cents at 12:46 pm AEDT.
