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Hot Chili secures funding for Productora

Hot Chili secures funding for Productora

Photo by Bloomberg

14th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Copper developer Hot Chili has secured $25-million in funding to advance its flagship Productora project, in Chile.

The company reported on Wednesday that it had signed a term sheet with Sprott Resource Lending Partnership for a secured debt facility.

The 12-month facility remained subject to a number of conditions, including a due diligence, the completion of formal documentation and approval by Sprott’s partners.

Hot Chili had also agreed to an exclusivity period until the end of June, where it was restricted from engaging in discussions with alternate finance providers. 

The funds raised from the facility would be used to complete the prefeasibility study at Productora, as well as to fund further drilling, general working capital and initial work on a definitive feasibility study.

Productora currently has an ore reserve of 90.5-million tonnes, grading 0.48% copper, 0.11 g/t gold and 172 parts per million (ppm) molybdenum, as well as a resource of some 214.3-million tonnes, grading 0.48% copper, 0.1 g/t gold and 138 ppm molybdenum for one-million tonnes of contained copper, 675 000 oz of gold and 29 000 t of molybdenum.

Edited by Creamer Media Reporter

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