- Hot Chili (HCH) will soon carry out another capital raise as part of its planned dual listing in Canada on the TSX-V
- HCH recently raised $40 million in capital, with support of mining giant Glencore, to buy all of the Cortadera copper-gold discovery in Chile
- Despite the injection of funds, the materials stock ended September 30 with only enough cash to keep running for another 1.94 quarters
- The company had over $12 million in the bank, having spent $6.2 million on operating activities including exploration costs
- HCH shares are up 2.08 per cent at 4.9 cents each
Hot Chili (HCH) will soon carry out another capital raise as part of its planned dual listing in Canada on the TSX-V.
The materials stock released its latest quarterly report on Monday, revealing it ended the quarter with just 1.94 quarters of funding growth left.
Explaining how it will fund itself going forward, HCH pointed to a likely capital raise being carried out as part of the company’s Canadian listing.
A 50 to one share consolidation for shareholders is proposed as part of the dual listing, which is due to be completed this year.
The fundraise comes after HCH already raised $40 million in capital during the September quarter, with support of mining giant Glencore.
The business used the extra cash to complete its acquisition of 100 per cent of the Cortadera copper-gold discovery.
The company said it spent around $6.2 million on operating activities during Q1, including over $4 million on exploration at the Chile-based asset.
Specifically, an extensional drill program was carried out at Cortadera ahead of a planned resource upgrade.
Additionally, HCH said pre feasibility studies continued at its Costa Fuego development during the September quarter.
All up, Hot Chili ended the first quarter with just over $12 million in the bank – an increase on last quarter’s $3.47 million, but not enough funds to keep the company running.
Company shares were trading up 2.08 per cent at 4.9 cents each at 11:45 am AEDT.