- Hot Chili (HCH) has received a 12-month extension for the remaining purchase of the Cortadera copper-gold project in Chile
- The company and SCM Carola have extended the remaining purchase dates to mid-July 2021 and mid-July 2022
- Approximately US$10 million and US$15 million will be paid out at these times
- However, this extension doesn’t come without a price
- Hot Chili must pay SCM Carola an additional fee of US$2 million before July 15 of this year
- This new payment schedule gives Hot Chili more time to focus on growing Cortadera towards its first large resource estimate
- Company shares are up a strong 18.8 per cent and are currently trading for 1.9 cents each
Hot Chili (HCH) has received a 12-month extension for the remaining purchase of the Cortadera copper-gold project in Chile.
Hot Chili, and SCM Carola, a Chilean mining company, have extended the remaining purchase dates to mid-July 2021 and mid-July 2022.
Approximately US$10 million and US$15 million will be paid out at these times.
However, this extension doesn’t come without a price. Hot Chili must pay SCM Carola an additional fee of US$2 million before July 15 of this year.
This new payment schedule gives Hot Chili more time to focus on growing Cortadera towards its first large resource estimate.
“The extension agreement reinforces our strong relationship with SCM Carola and the company’s commitment towards the rapid growth and development of Cortadera,” Managing Director Christian Easterday stated.
“It is pleasing to see that our key Chilean stakeholders share our vision to create a new and globally significant coastal copper hub and continue to support Hot Chili as a partner of choice,” he said.
The purchase was first executed in February 2019 as Hot Chili believed, and still does, that fully purchasing it would transform the company into a premier copper-gold developer.
Cortadera is located 600 kilometres south of Santiago in Chile and it is considered one of the largest copper-gold discoveries globally.
It lies in close proximity to Hot Chili’s other projects, Productora and El Fuego.
Since the project was first discovered and drilled in 2011, a total of just 39 diamond drill holes, for 23,231 metres, have been completed and results have peaked as high as one per cent copper and 0.4g/t gold.
Cortadera remains open at depth and along strike.
Hot Chili will provide additional information over the upcoming weeks regarding unreleased drill results, and the restarting of expansion drilling.
Company shares are up a strong 18.8 per cent and are trading for 1.9 cents each at 11:48 am AEST.