STOCKHEAD | March 3, 2022
Hot Chili and swiss-based resource company Glencore enter into an offtake agreement for future copper concentrate production at the Costa Fuego Project in Chile.
This offtake agreement covers 60% of copper concentrate from Costa Fuego for eight years from start of commercial production and is on ‘arm’s-length commercially-competitive’ benchmark terms.
Glencore is Hot Chili’s (ASX:HCH) largest shareholder (9.96%) following their strategic investment in August 2021 and have the right to board representation and participation in a technical steering committee.
Transformation into copper-gold producer
HCH managing director Christian Easterday said the quality of Costa Fuego continues to be “externally validated” with Glencore’s 2021 investments and now, with this offtake agreement.
“We ensured project financing flexibility with 40% of our first eight years of concentrate production remaining uncommitted ahead of initiating project financing discussions in 2022, following completion of the Costa Fuego pre-feasibility study,” he said.
“Glencore’s expertise and support is welcomed and is an important part of our strategy to successfully transform the company into a material copper-gold producer.”