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Glencore takes a stake in copper junior Hot Chili

2nd August 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Diversified major Glencore has taken a 9.99% stake in ASX-listed junior Hot Chili, investing A$14.4-million into the copper developer.

Glencore will have the right to appoint a director to the Hot Chili board, and to appoint members to a technical steering committee to advise on operational matters.

Hot Chili on Monday said that the company would also grant Glencore offtake agreements over 60% of the concentrate produced from commercial productions for a period of eight years, on arms-length commercially competitive benchmark terms.

These rights would be subject to Glencore maintaining a 7.5% interest in Hot Chili, except where the major did not have the opportunity to participate in a dilution event.

“Hot Chili welcomes the strategic alignment with Glencore, especially as the company moves towards a dual listing on the TSX-Venture exchange by the end of 2021,” said Hot Chili MD Christian Easterday.

“We view this as a significant milestone event and a strong endorsement by Glencore. We believe Glencore will make an excellent partner in the development of Costa Fuego, which testament to Hot Chili’s staff and consultants who are working tirelessly to transition Hot Chili into a tier 1 copper developer.”

The Costa Fuego development includes the Cortadera, Productora and El Fuego assets, and is estimated to host some 2.9-million tonnes of copper, 2.7-million ounces of gold, 9.9-million ounces of silver and 64 000 t of molybdenum.

Edited by Creamer Media Reporter

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