Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQB: HHLKF) (â€œHot Chiliâ€ or â€œCompanyâ€) is pleased to announce the execution of an Offtake Agreement with Glencore for future copper concentrate production from the Companyâ€™s Costa Fuego copper-gold project in Chile.
The Glencore offtake agreement covers 60% of copper concentrate from Costa Fuego for 8 years from start of commercial production and is on arms-length commercially competitive benchmark terms.
Glencore is Hot Chiliâ€™s largest shareholder (9.96%) following their strategic investment in August 2021 (see ASX announcement dated 2nd August 2021) and subsequent participation the Companyâ€™s recent TSXV capital raising in December 2021 (see ASX announcement dated 21st December 2021).
Glencore have the right to Board representation (Mr Mark Jamieson) and participation in a technical steering committee.Â These rights remain subject to Glencore holding at least 7.5% of the share capital of Hot Chili.
Hot Chiliâ€™s Managing Director Christian Easterday commented:
â€œThe quality of Costa Fuego continues to be externally validated with Glencoreâ€™s 2021 equity investments and the execution of this Offtake Agreement on commercially competitive terms.Â
â€œWe 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.
â€œGlencoreâ€™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.â€
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
For more information please contact:
Managing Director â€“ Hot Chili
|Â||Tel:Â Â Â Â +61 8 9315 9009
Company Secretary â€“ Hot Chili
|Â||Tel:Â Â Â Â +61 8 9315 9009
Investor & Public Relations (Australia)
Investor & Public Relations (Canada)
or visit Hot Chiliâ€™s website at www.hotchili.net.au
Forward Looking Statements
This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties and may differ materially from results ultimately achieved.
The Announcement contains â€œforward-looking statementsâ€. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any â€œforward-looking statementâ€ to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person
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