PERTH (miningweekly.com) – Junior Hot Chili will raise A$5-million through a private placement to sophisticated and professional investors to fund general working capital requirements and to satisfy a $2-million part-payment for its Carola option agreement.
The share placement will be undertaken in two tranches, with the first 150-million shares, at a price of 3c each, to be placed under the company’s existing capacity.
The second tranche of more than 16.6-million shares will be subject to shareholder approval.
Hot Chili MD Christian Easterday said on Tuesday that the strong response to the placement came as no surprise, given the success of the company’s recent drilling programme at Cortadera, in Chile.
“We have achieved an excellent outcome from our first confirmation and extensional drill programme at Cortadera. Drilling by Hot Chili has uncovered the beginnings of a new bulk tonnage high-grade zone of copper and gold, completely changing the scale and potential pedigree of the Cortadera discovery.”
Easterday said the results confirmed Cortadera as a potential company-maker for Hot Chili, and heralded the beginning of an exciting future.
Under a memorandum of understanding (MoU) with SCM Carola, Hot Chili could acquire the Cordatera project for $30-million, payable in three tranches. The $2-million payment is the first installment towards the acquisition.
The buy will be subject to Hot Chile securing project-level funding, as well as shareholder approval.