- Hot Chilli (HCH) commences negotiations for the final critical infrastructure item required for its Costa Fuego copper development hub in Chile’s Atacama region
- The company signed a letter of intent (LOI) with Puerto Las Losas SA (PLL) to negotiate a port access and services agreement
- PLL expects to present Hot Chili with a binding offer within the next 12 weeks
- Should the agreement be executed, operations are expected to begin during the last quarter of 2025
- Shares in Hot Chili were down 4.58 per cent to $1.77 per share as of 12:23 pm AEDT
Hot Chili (HCH) has commenced negotiations for the final critical infrastructure item required for the development of its Costa Fuego copper development hub in Chile’s Atacama region.
The company has signed a letter of intent (LOI) with Puerto Las Losas SA (PLL) to negotiate a port access and services agreement for PLL’s facilities.
The facilities are located at Huasco, approximately 50 kilometres west of the project’s proposed processing plant.
Under the terms of the LOI, PLL will finance a study for port services using the existing dock, for the shipment of copper concentrates and other materials related to the future construction and operation of Costa Fuego.
Hot Chili Country Manager and Chief Legal Counsel Jose Ignacio Silva said securing port services will be a major step forward for the project.
“Leveraging off existing port infrastructure will materially reduce Costa Fuego’s environmental footprint during construction and operations,” he said.
“As no new port or areas will be required for construction or subject to environmental permitting, we expect a positive impact to our construction capital requirements and overall permitting/construction timelines.”
Hot Chili Managing Director Christian Easterday added that the company is dedicated to progressing the hub within an environmental, social and governance (ESG) framework.
“Our LOI with PLL demonstrates our continued commitment to advancing Costa Fuego within an ESG framework that reduces the overall environmental impact and uses Chilean goods, services and businesses where possible.”
PLL has undertaken to present Hot Chili with a binding offer for port services within the next 12 weeks.
Should an agreement be executed, PLL has said it will commence any required upgrade at Las Losas, and both parties will work together on a best endeavours basis to start operations during the last quarter of 2025.
Later this quarter, the company hopes to provide further updates on its various workstreams, including drilling results from three rigs in operation, development studies, and corporate actions in the lead up to a planned major resource upgrade for Costa Fuego.
Shares in Hot Chili were down 4.58 per cent to $1.77 per share as of 12:23 pm AEDT.