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Cortadera Option Terms

The Option Agreement under which Frontera SpA (“Frontera” - 100% subsidiary of Hot Chili) will have the option to acquire a 100% interest in Carola’s Mining Rights related to the Cortadera project, is detailed below:

  • The purchase price payable to acquire the Cortadera project is US$30 million, payable in three instalments over a 30 month term (“Option Period”) as follows:

  1. US$5 million within 6 months from execution of the MOU

  2. US$10 million no later than 18 months from execution of the MoU

  3. US$15 million no later than 30 months from execution of the MoU

  • All instalments of the purchase price during the Option Period shall be non-refundable,

  • Upon exercise of the Option, Frontera is not committed to making any subsequent instalment of the purchase price, and may elect not to pay subsequent instalments and relinquish all interest in the Cortadera project,

  • The MOU provides for the Option Agreement to be executed within 3 months from the date of the MoU, and

  • The Option is subject to legal due diligence and favourable opinion by Frontera, which shall not be unreasonably withheld.