Hot Chili to sign infrastructure deal for Productora
PERTH (miningweekly.com) – Junior copper developer Hot Chili on Monday told shareholders that it was on the cusp of signing a memorandum of understanding with Chilean major Compania Minera del Pacifico SA (CMP) over a joint infrastructure agreement for its Productora project.
The proposed joint infrastructure agreement would ensure that the Productora project would be developed in cooperation with, and to the mutual benefit of both Hot Chili and CMP.
The proposed agreement would unlock significant operational synergies for both companies and would allow Productora to be developed in a shortened timeframe.
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.
Meanwhile, Hot Chili also announced on Monday that it had executed a credit agreement with Canadian resource financier Sprott Resource Lending Partnership for a $25-million debt facility.
An initial $10-million had been drawn down under the facility, which was initially announced in May this year. The $10-million would help fund development activities at Productora, including the completion of a prefeasibility study, further drilling and initial work on a definitive feasibility study.
The remainder of the debt facility could be drawn down on the grant of further security, or on Hot Chili reaching an agreement and implementing the joint infrastructure agreement with CMP.
Hot Chili told shareholders that the company was also continuing discussions with several other companies, giving interested parties access to the data room, for further funding and development agreements.
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