- Copper producers Hot Chili is set to raise $12.1 million to fund developments at its Cortadera project, Chile
- New institutional investors are set to join the register and existing shareholders will increase their holding
- Hot Chili’s share price is up 5.41 per cent today, currently sitting at 3.9 cents apiece
Copper producers Hot Chili is set to raise $12.1 million to assist project development, after receiving commitments from a number of institutional investors.
Investors from Australia and North America will join the register, and exisiting shareholders Taurus Funds and company Chairman Murray Black will increase their holding.
Funds raised will be used to continue work at the company’s fully owned Cortadera project which it purchased this year.
“The funding support allows Hot Chili to maintain its ability to control 100% of Cortadera through the most value accretive stages of a major global discovery,” company Managing Director Christian Easterday said.
A second phase drilling programme will continue under the funding, which is aiming to determine to projects significant initial resource.
Additionally, US$3 million will be used to finance its purchase of the project from Chilean mining group Carola.
On top of this, a 15,000 metre reverse circulation and diamond drilling programme will be completed.
The company advised discussions are ongoing to secure additional long-term funding, as it works to produce “one of the world’s top potential stand-alone copper-gold developments.”
Institutional investors will buy into the company at a discounted cost of 3.6 cents per share.
Today, shares in the company are trading for 3.9 cents apiece, following a 5.41 per cent increase in value.