PERTH (miningweekly.com) – Copper developer Hot Chili has secured C$30-million in funding to advance the development of its Costa Fuego copper/gold project, in Chile.
The company will place more than 19.3-million shares at a price of C$1.55 each to institutional investors, as well as some of its largest shareholders, including major Glencore.
The shares will be issued under Hot Chili’s existing placement capacity, with the majority of the shares to be placed under the company’s existing placement capacity. Hot Chili would also issue one free-attaching warrant, exercisable at C$2.50 each, for every two new shares subscribed for.
Glencore has maintained its 9.99% interest in Hot Chili, providing strong backing ahead of the company’s plans to dual list on the TSX Venture Exchange this year and execute a strong growth and development plan.
The share placement is subject to Hot Chili completing a dual listing on the Canadian Stock Exchange.
Hot Chili MD Christian Easterday said this recent funding is yet another strong endorsement of the company and its Costa Fuego copper/gold development in Chile.
“We hope to add a presence in North American markets and continue to focus on delivering Costa Fuego into production against a backdrop of strengthening copper price and limited new large copper mines.
“Costa Fuego is a stand-out major copper development in a short field of players globally.”
Costa Fuego is estimated to host 2.9-million tonnes of copper, 2.7-million ounces of gold, 9.9-million ounces of silver and 64 000 t of molybdenum, and consists of the Cortadera, Productora and El Fuego projects.