Hot Chili Advances Regional Water Supply Opportunity Location of a conceptual multi-user, desalination water network in relation to infrastructure and potential
Hot Chili Advances Regional Water Supply
Opportunity
Location of a conceptual multi-user, desalination water network in relation to infrastructure and potential
customers in the Huasco valley region of the southern Atacama, Chile (CNW Group/Hot Chili Limited)
Highlights
Hot Chili has completed a Water Supply Concept Study for the Huasco valley region of
Chile
,
confirming the potential for a large, multi-user, desalination water supply network
Hot Chili holds the only active granted maritime water concession and most of the necessary
permits
to provide critical water access to the Huasco valley region
Huasco valley region
contains
six major undeveloped copper projects
and two new large-scale
greenfield copper discoveries
, all of which require desalinated water supply
Water Supply Business Case Study now underway to assess a potentially 100% renewable energy
driven desalination water business
to supply community, agricultural and new mining demand of up to
3,700 litres per second (l/s) over the long-term
Staged water network development being studied
, with initial 300 l/s scale
supported by potential
foundation off-takers, including Hot Chili
Significant economic, environmental and social synergies
identified for all potential customers
Potential customer and infrastructure partner engagement process commenced
Hot Chili's Managing Director and CEO, Christian Easterday said:
"The opportunity to develop a regional water business for the southern Atacama is exciting. It
brings together the perfect marriage of economic, environment and social benefits for a wide range of
stakeholders.
One, single, desalination water supplier, with the potential to unlock several significant mining
investments, is a blueprint for the future of responsible water supply in the Atacama and a significant
opportunity to surface value for Hot Chili, following over 10 years of investment to obtain the necessary
water concession and permits."
View over Hot Chili’s coastal land access site for its approved Maritime concession, Huasco Chile (CNW
Group/Hot Chili Limited)
PERTH, Australia
,
Feb. 26, 2024
/CNW/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot
Chili" or the "Company") is pleased to report that the Company has completed an initial concept study for a
potential water supply business for the Huasco valley region of
Chile
.
Hot Chili holds the only granted maritime water concession and most necessary permits to provide critical
water access to the Huasco valley region following over a decade of permitting advance for the Company's
coastal range, Costa Fuego copper-gold project.
While Costa Fuego's mine development plan considers the use of raw seawater for future processing, the Water
Supply Concept Study (the "Study") confirms potential to also develop a large, multi-user, desalination water
supply business.
The Study outlines an opportunity to develop a potentially 100% renewable energy driven desalination water
business to supply community, agricultural and new mining demand of up to 3,700 litres per second (l/s) over the
long-term. Staged development scenarios were assessed considering an initial development of a 300 l/s
desalination plant being supported by potential foundation off take partners, including Hot Chili.
Water scarcity in the Atacama region of South America is one of the largest challenges facing new global copper
supply.
Leveraging Hot Chili's water assets to enable the development of multiple, nearby, large-scale copper projects,
comes at a time where
Chile's
government is actively encouraging investment in multi-user desalination water
networks in the Atacama.
Similar market, regulatory and commercial conditions occurred in
Chile's
energy market ahead of a surge in
renewable power investment over the past decade, which has led to a dramatic reduction in energy costs across
the Atacama region.
A Water Supply Business Case Study is now underway, and the Company has commenced early engagement
with potential desalinated water customers. In addition, Hot Chili is also engaging with several large, potential
water infrastructure partners.
Key Outcomes from the Water Supply Concept Study
Market Opportunity
Located in the southern Atacama with a 150 km area of influence.
Multiple potential customers:
CMP (Los Colorados)
Nueva Union
(Relincho and La Fortuna)
Lundin Group Developments (Josemaria,
Filo del Sol
and Los Helados)
Hot Chili (Costa Fuego)
Huasco Valley Communities (multi-purpose)
Total water demand estimated at over 3,700 l/s in the long-term
Initial stage of development estimates water demand of 300 l/s including Hot Chili as potential foundation
customer
Long term business from which other industrial/mining projects can be incorporated
Engineering
Infrastructure/assets considered: Water intake, desalination plant, discharge, distribution, waste collection,
distribution points
Similar projects of this nature are being completed in
Chile
, e.g. Aguas Horizonte (Joint Venture between
CODELCO and Marubeni)
Secured electrical concession rights to grid (Maintencillo substation)
Pipeline right of way secured from coast to Costa Fuego
Opportunity to utilise 100% renewable energy
Large amount of local engineering and construction expertise available
Access to existing infrastructure
Existing road network facilitate the supply to communities and reduce environmental/permitting risks
Stakeholder and Regulatory
Good relationship with local communities. Early engagement process ongoing
Granted maritime concession with land access (Huasco department) large enough to support the
infrastructure needed
Second maritime concession filing process underway, near Hot Chili's current maritime concession, to
facilitate desalinated water supply
Legal/Environmental due diligence and market assessment supports the business opportunity case
Potential for direct government support being reviewed
Potential customer engagement commenced
Financing and Investment
Market interest is high from organisations recognising the opportunity to participate in an early life cycle
project with strong foundations
Opportunity to explore a range of financing and investment options
Water Supply Concept Study provides basis for further detailed engineering studies for the full development
plan to commence in
March 2024
The Company looks forward to providing further updates on its Costa Fuego copper-gold project and Hot Chili's
advancement of economic, social and environmental synergies for the Huasco valley region.
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
Hot Chili's Managing Director and Chief Executive Officer Mr
Christian Easterday is responsible
for this
announcement and has provided sign-off for release to the ASX and TSXV.
For more information please contact:
Christian Easterday
Managing Director – Hot Chili
Tel:
+61 8 9315 9009
Email:
Penelope Beattie
Company Secretary – Hot Chili
Tel:
+61 8 9315 9009
Email:
Harbor Access
Investor & Public Relations
Email:
Email:
or visit Hot Chili's website at
www.hotchili.net.au
Qualifying Statements
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Qualified Person
The technical information in this news release has been reviewed and approved by Mr. Christian
Easterday, MAIG, Hot Chili's Managing Director and a qualified person within the meaning of NI43-101.
All amounts in this news release are in U.S. dollars unless otherwise noted.
Forward Looking Statements
This news release contains certain statements that are "forward-looking information" within the meaning of
Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). All
statements other than statements of historical fact are forward-looking statements. The use of any of the words
"believe", "could", "estimate", "expect", "may", "plan", "potential", "projections", "should", "will", "would", variants
of these words, and similar expressions are intended to identify forward-looking statements. The forward-
looking statements within this news release are based on information currently available and what management
believes are reasonable assumptions. Forward-looking statements speak only as of the date of this news
release. In addition, this news release may contain forward-looking statements attributed to third-party industry
sources, the accuracy of which has not been verified by the Company.
In this news release, forward-looking statements relate, among other things, to: the Ccompletion, timing, cost
and results of a Water Supply Business Case Study; the execution of water off-take agreements including the
approval of the TSXV (if required) and any other regulatory approvals; prospects, projections and success of the
Company and its projects; the Company's ability to secure a suitable water infrastructure partner; the timing and
outcomes of future planned economic studies; the timing and outcomes of regulatory processes required to
obtain permits for the development and operation of a multi-user desalination water business as contemplated in
the Water Supply Concept Study; whether or not the Company will make a finance and development decision and
the timing thereof.
Forward looking statements involve known and unknown risks, uncertainties, and other factors, which may cause
the actual results, performance, or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking statements. A number of
factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the
forward-looking statements in this news release, including, but not limited to, the following material factors: the
ability of the Company to complete the Water Supply Business Case Study, securing water off-take customers;
obtaining all required regulatory approvals to develop a regional water network; operational risks; risks related to
the cost estimates of exploration; sovereign risks associated with the Company's operations in
Chile
; changes in
estimates of mineral resources of properties where the Company holds interests; recruiting qualified personnel
and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral
prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or
performance of properties where the Company holds interests; ability to retain title to mining concessions;
environmental risks; financial failure or default of joint venture partners, contractors or service providers;
competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this
news release and elsewhere in the Company's public disclosure record.
Although the forward-looking statements contained in this news release are based upon assumptions
which the Company believes to be reasonable, the Company cannot assure investors that actual results will be
consistent with these forward- looking statements. With respect to forward-looking statements contained in this
news release, the Company has made assumptions regarding: future commodity prices and demand; availability
of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the
impact of increasing competition; general conditions in economic and financial markets; availability of drilling and
related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs;
availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related
to adjusted funds from operations. The Company's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
For additional information with respect to these and other factors and assumptions underlying the forward-looking
statements made herein, please refer to the public disclosure record of the Company, including the Company's
most recent Annual Report, which is available on SEDAR+ (
www.sedarplus.ca
) under the Company's issuer
profile. New factors emerge from time to time, and it is not possible for management to predict all those factors
or to assess in advance the impact of each such factor on the Company's business or the extent to which any
factor, or combination of factors, may cause actual results to differ materially from those contained in any
forward-looking statement.
The forward-looking statements contained in this news release are expressly qualified by the foregoing
cautionary statements and are made as of the date of this news release. Except as may be required by
applicable securities laws, the Company does not undertake any obligation to publicly update or revise any
forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the
occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
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SOURCE
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%SEDAR: 00053528E
CO: Hot Chili Limited
CNW 07:25e 26-FEB-24