Hot Chili Closes Us$15 Million Investment By Osisko Gold Royalties

Jul 26, 2023•about 2 years ago

Amount Raised

$15 Million

Perth

Investors

OsiskoOsisko Gold Royalties Ltd

Description

Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce that it has closed its previously announced transaction with Osisko Gold Royalties Ltd ("Osisko"), pursuant to which Hot Chili received proceeds of US$15 million in exchange for the sale of a 1.0% Net Smelter Return (NSR) royalty on copper and a 3% NSR royalty on gold (the "Investment") across the Company's Costa Fuego Copper-Gold Project ("the Project") located 600 km north of Santiago, at low elevation (<1,000 m) in the coastal range of the Atacama Region, Chile.

Company Information

Company

Hot Chili

Location

Perth, Western Australia, Australia

About

Hot Chili Ltd (ASX/TSXV: HCH) (OTCQX: HHLKF) is well positioned to benefit from the looming structural shortfall in the most critical commodity of them all – copper. The Company aims to build shareholder value through the growth and development of its high-quality Costa Fuego copper project, located in a low elevation and accessible region of northern Chile. Costa Fuego is rated by S&P Global Market Intelligence (2022) as one of the top 10 “low risk” undeveloped copper projects globally. With substantial mineral resources already defined and an active drill program testing new targets underway, Hot Chili provides substantial leverage to the copper price due to the size, quality and low economic hurdle location of its resource base. Costa Fuego has an indicated resource of 2.8Mt Cu, 2.6Moz Au and 67kt of Mo (in 725Mt) and inferred resource of 0.6 Mt Cu, 1.2 Moz Au and 13kt Mo (in 202Mt). Hot Chili recently obtained secondary listings on the TSXV and OTCQX to better align with the exchanges of its global copper peer group. The Company aims to narrow the relative valuation gap between large Australian copper developers and their North American listed peers, particularly as the general market starts to appreciate the medium term structural deficit in copper – the critical commodity – and the copper price required to incentivize new production.

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