Hot Chili Closes US$15 Million Investment by Osisko Gold Royalties NEWS PROVIDED BY Hot Chili Limited
Hot Chili Closes US$15 Million
Investment by Osisko Gold Royalties
NEWS PROVIDED BY
Hot Chili Limited
26 Jul, 2023, 07:05 ET
PERTH, Australia, July 26, 2023 /CNW/ - 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.
The Investment by Osisko has strengthened the Company's current cash position
to approximately A$26 million, demonstrated strong look-through value of the Project's
economics (see the Company's announcement dated 28th June 2023, entitled "Hot Chili
Announces PEA for Costa Fuego") and provided another signi cant endorsement of Hot
Chili's Costa Fuego project from one of North America's leading royalty-streaming groups
(see the Company's announcement dated 28th June 2023, entitled "Hot Chili Announces
US$15 Million Investment Agreement with Osisko Gold Royalties").
The Company is now well funded to deliver the next steps in its growth and development
plan, including:
Commencement of 30,000 m drill program – preparations well-advanced; drilling
operations set to commence in the coming weeks.
Completion of Costa Fuego resource upgrade by late 2023
Delivery of Costa Fuego pre-feasibility study ("PFS") in H2 2024 – The Company has
already considerably advanced its PFS (approximately 80% complete) with minimal
expenditure required for completion
Hot Chili's Managing Director Mr Christian Easterday commented, "We are very pleased
to have closed the Investment with Osisko Gold Royalties enabling the Company to
advance the project without the dilution of a share issuance."
"Costa Fuego is globally relevant, being one of only a handful of projects with potential to
deliver near-term, meaningful, new copper supply into a looming global copper supply
shortage."
The Company looks forward to providing updates on the Company's next steps shortly.
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
Hot Chili's Managing Director and Chief Executive Of cer 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: [email protected]
Penelope Beattie
Company Secretary – Hot Chili
Tel: +61 8 9315 9009
Email: [email protected]
Harbor Access
Investor & Public Relations (Canada)
Email: [email protected]
Email: [email protected]
or visit Hot Chili's website at www.hotchili.net.au
Qualifying Statements
Forward Looking Statements
This document contains certain "forward-looking statements" and "forward-looking
information" concerning the business, operations and nancial performance and condition
of Company. Forward-looking statements and forward-looking information include, but are
not limited to, statements with respect to the timing and ability, if at all, for the completion
of the PFS; the timing and ability, if at all, to complete a resource upgrade at Costa Fuego;
timing of the commencement of the Company's 30,000m drill programme; permitting and
legal processes in relation to mining permitting and approvals; estimated production and
mine life of the various mineral projects of the Company; the ability to obtain permits for
operations; synergies; the realisation of mineral resource estimates; the bene ts of the
development potential of the properties of the Company; the future price of minerals,
including gold, copper, and silver; the estimation of mineral reserves and resources; success
of exploration activities; and currency exchange rate uctuations. Except for statements of
historical fact relating to the Company, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are frequently characterised by
words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions "may", "should" or "will" occur.
Forward-looking statements are based on the opinions and estimates of the Company at
the date the statements are made and are based on a number of assumptions and subject
to a variety of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking statements. Many of
these assumptions are based on factors and events that are not within the control of the
Company and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such
forward-looking statements include the results of the
Company's preliminary economic assessment and planned PFS, as well as future economic
studies, the results of the planned 30,000m drill programme and their impact on mineral
resources and the economic studies, variations in ore grade or recovery rates, changes in
market conditions, risks relating to the availability and timeliness of permitting and
governmental approvals; risks relating to international operations, uctuating metal prices
and currency exchange rates, changes in project parameters, the possibility of project cost
overruns or unanticipated costs and expenses, labour disputes and other risks of the mining
industry, failure of plant, equipment or processes to operate as anticipated.
The Company cautions that the foregoing list of important factors is not exhaustive. Investors
and others who base themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and the risk they entail and are
cautioned not to place undue reliance on forward-looking statements. The Company
believes that the expectations re ected in those forward-looking statements are reasonable,
but no assurance can be given that these expectations will prove to be correct and such
forward-looking statements included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release.
Although the Company has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company undertakes no
obligation to update forward-looking statements if circumstances or the Company's
estimates or opinions should change except as required by applicable securities laws. Any
comparative market information is as of a date prior to the date of this document.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
de ned in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this news release.
This document (the "Document") is to be used by the recipient for informational purposes
only and does not purport to be complete or contain all the information that may be
material to the current or future business, operations, nancial condition, or prospects of
Hot Chili Limited ("Hot Chili" or the "Company"). Each recipient should perform its own
independent investigation and analysis of Hot Chili, and the information contained in this
Document is not a substitute therefore. Hot Chili makes no representation or warranty,
express or implied, as to the accuracy or completeness of the information contained in this
Document or in any other written or oral communication transmitted to any recipient by
any party. Except for liability which cannot be disclaimed by law, by accepting this
Document, the recipient agrees that neither Hot Chili nor any of its of cers, directors,
employees, or representatives has any liability for any representations or warranties, express
or implied, contained in, or for any omissions from, this Document or any such other written
or oral communication from any person.
Certain information contained herein is based on, or derived from, information provided by
independent third-party sources. Hot Chili believes that such information is accurate and
that the sources from which it has been obtained are reliable; however, Hot Chili has not
independently veri ed such information and does not assume any responsibility for the
accuracy or completeness of such information.
This Document should not be considered as a recommendation from any person to
purchase any securities. Each person for whom this Document is made available should
consult its own professional advisors in making its own independent investigations and
assessment and, after making such independent investigations and assessments, as it
deems necessary, in determining whether to proceed with any investment in the Company.
SOURCE Hot Chili Limited