PriceSensitive

Hot Chili (ASX:HCH) gains support for CAD$30m placement

Mining
ASX:HCH      MCAP $146.3M
10 December 2021 13:07 (AEST)
Hot Chili (ASX:HCH) - Managing Director, Christian Easterday

Source: The Market Herald

Some of Hot Chili’s (HCH) largest investors have supported its CAD$30 million (A$33 million) placement contingent on approval of the company’s dual-listing on the TSX.

The company is offering shares at CAD$1.55 each (A$1.71), as well as one free-attaching warrant, exercisable at CAD$2.50 (A$2.75) for every two shares issued with a term of two years.

Funds raised will be used to upgrade the Cortadera Resource, advance the Costa Fuego preliminary feasibility study (PFS) and to test several high-priority exploration targets.

The company has submitted its application to list on the TSXV and has reserved the code “HCH.”

Hot Chili is the largest ASX-listed copper developer, and importantly, is the only major copper-gold porphyry developer in the Americas that is not listed in North America.

One of its largest shareholders, Glencore, will keep its 9.99 per cent interest in Hot Chili and is providing strong backing ahead of the dual listing.

Managing Director Christian Easterday said this recent funding is another strong
endorsement of the company and its Costa Fuego copper-gold development in Chile.

“We hope to add a presence in North American markets and continue to focus on delivering Costa Fuego into production against a backdrop of strengthening copper price and limited new large copper mines,” he said.

“Costa Fuego is a stand-out major copper development in a short field of players globally.”

On the market today, Hot Chili was down 9.70 per cent and is trading at $1.87 per share at 12:16 pm AEDT.

Related News