Hot Chili takes option on copper project near Costa Fuego
Copper development company Hot Chili has taken another step in its consolidation strategy for the Costa Fuego project, in Chile, with a binding letter of intent (LoI) for an option to acquire Australia-listed Bastion’s Cometa project.
Cometa consists of exploration and mining concessions covering about 56 km2 in the area located about 15 km southwest of Costa Fuego’s planned operating centre and contiguous with Hot Chili landholdings in the region.
The company is focused on upscaling Costa Fuego’s resource base and potential study scale towards 150 000 t/y production profile ahead of the delivery of a prefeasibility study in the second half of next year.
Cometa provides additional optionality for the discovery of further mineral deposits in the project area with the potential to provide supplemental feed and or a longer mine life than laid out in the recently released preliminary economic assessment (PEA).
The June 2023 PEA establishes Costa Fuego as a low-risk, long-life copper project benefitting from a low startup capital and high yearly copper equivalent profile of more than 100 000 t/y for a 16-year mine life, including 95 000 t/y of copper and 49 000 oz/y of gold during the first 14 years of production.
In terms of the LoI, Hot Chili has been granted a 60-day exclusivity period for a due diligence and for its subsidiary, Sociedad Minera La Frontera to enter into a definitive option agreement with Bastion’s subsidiary.
Upon grant of the option, there is a $100 000 nonrefundable cash payment owing, and 12 months later, a $200 000 cash payment.
If the option is exercised, Hot Chili must pay Bastion $2.4-million within 18 months and $3-million within 30 months from the date of the grant of the option.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Sweet-Orr, established in 1871, is a global leader in superior protective workwear, known for quality, innovation, and performance.
VISIT SHOWROOM
ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
