“Over 2.5km cumulative strike length of mantos and vein hosted copper mineralisation”
Tenements, Location and Access
Hot Chili, through its Chilean subsidiary company SMEAL, has entered into a five year option agreement for the 100% purchase of the Los Mantos project. The private purchase-option agreement with local Chilean landholder and mine operator Mr. Aldo Cordero Godoy was executed on the 11th of June 2009, with the payment of US$220,000. The right to purchase 100% of Los Mantos is exercisable at any time within the five year option period following satisfaction of all remaining yearly option payments and an exercise payment of US$2,000,000.
Mr. Aldo Cordero Godoy will receive a 0.5% Gross Production Royalty on all marketable minerals produced from the project and a 30,000 tpa mining concession during the five year option period.
The Los Mantos project comprises 9 licences in total, including 5 Mining Exploitations and 4 Exploration Licences. The Exploration Licences have been constituted as a layer of protection and do not add to the landholding of the project, defined only by the 5 Mining Exploitation Licences. The Mining Exploitation Licences cover approximately 264 ha.
The project lies 58km south of La Serena in Region IV of Chile with good access from the main sealed highway connecting La Serena to the mining township of Ovalle to the south.