Hot Chili Acquires 100% of Cortadera
Thursday 23rd September 2021
Hot Chili Limited (ASX: HCH) (OTCQB: HHLKF) (“Hot Chili” or “Company”) is pleased to announce the early exercise of its option to acquire a 100% interest in the Company’s world-class Cortadera copper-gold discovery in Chile.
The option agreement between Hot Chili and SCM Carola, the owners of the Cortadera landholding, was dually exercised in Santiago, Chile on Tuesday 21st September, following acknowledgement of receipt of the final instalment of US$15 million.
Hot Chili have now satisfied US$32 million in payments since February 2019 to acquire Cortadera, securing the centrepiece of the Company’s 724Mt Costa Fuego copper-gold development.
Since drilling began in April 2019, Cortadera has been transformed from a small private porphyry discovery into one of the world’s leading, large-scale, copper-gold discoveries – elevating Hot Chili into the senior ranks of global copper developers.
Hot Chili’s Managing Director Christian Easterday said the early acquisition of Cortadera was an important milestone for the Company.
“We are extremely pleased to move to full ownership of Cortadera almost one year ahead of schedule, given the success of our exploration to date.
“Cortadera is already one of the lowest-cost acquisitions in the copper sector and we believe it has a long way to grow.
“I would like to thank SCM Carola for their partnership to contribute Cortadera to our plan to build a major coastal copper production hub.
“Costa Fuego is set to provide significant benefit to the region and local township of Vallenar for many decades to come.
“Strong green credentials, including the ability to utilise sea water processing and access power from large nearby solar plants, are matched by its low-altitude setting and location next to existing port facilities and regional infrastructure.
“The project is shaping as a cutting-edge, new generation major copper development in the world’s largest copper producing country.”
This announcement is authorised by the Board of Directors for release to ASX.
For more information please contact:
Managing Director Tel: +61 8 9315 9009
or visit Hot Chili’s website at www.hotchili.net.au
Figure 1 Location of Productora and the Cortadera discovery in relation to the coastal range infrastructure of Hot Chili’s combined Costa Fuego copper project, located 600km north of Santiago in Chile
Refer to ASX Announcement “Costa Fuego Becomes a Leading Global Copper Project” (12th October 2020) for JORC Table 1 information related to the Cortadera JORC compliant Mineral Resource estimate by Wood and the Productora re-stated JORC compliant Mineral Resource estimate by AMC Consultants
* Copper Equivalent (CuEq) reported for the resource were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery)+(Mo ppm × Mo price per g/t × Mo_recovery)+(Au ppm × Au price per g/t × Au_recovery)+ (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne). The Metal Prices applied in the calculation were: Cu=3.00 USD/lb, Au=1,550 USD/oz, Mo=12 USD/lb, and Ag=18 USD/oz. For Cortadera (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=56%, Mo=82%, and Ag=37%. For Productora (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=43% and Mo=42%. For Costa Fuego (Inferred + Indicated), the average Metallurgical Recoveries were: Cu=83%, Au=51%, Mo=67% and Ag=23%.
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