PERTH,
Australia, July 26, 2023 /CNW/ - Hot Chili Limited
(ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the
"Company") is pleased to announce that it has closed its previously
announced transaction with Osisko Gold Royalties Ltd ("Osisko"),
pursuant to which Hot Chili received proceeds of US$15 million in exchange for the sale of a 1.0%
Net Smelter Return (NSR) royalty on copper and a 3% NSR royalty on
gold (the "Investment") across the Company's Costa Fuego
Copper-Gold Project ("the Project") located 600 km north of
Santiago, at low elevation
(<1,000 m) in the coastal range of
the Atacama Region, Chile.
The Investment by Osisko has
strengthened the Company's current cash position
to approximately A$26 million, demonstrated strong
look-through value of the Project's economics (see the Company's
announcement dated 28th June 2023,
entitled "Hot Chili Announces PEA for Costa Fuego")
and provided another significant endorsement of Hot Chili's
Costa Fuego project from one of North
America's leading royalty-streaming groups (see the
Company's announcement dated 28th June
2023, entitled "Hot Chili Announces US$15 Million Investment Agreement with Osisko
Gold Royalties").
The Company is now well funded to deliver the next steps in its
growth and development plan, including:
- Commencement of 30,000 m drill
program – preparations well-advanced; drilling operations set
to commence in the coming weeks.
- Completion of Costa Fuego resource upgrade by late 2023
- Delivery of Costa Fuego pre-feasibility study ("PFS") in H2
2024 – The Company has already considerably advanced its PFS
(approximately 80% complete) with minimal expenditure required for
completion
Hot Chili's Managing Director Mr Christian Easterday commented, "We
are very pleased to have closed the Investment with Osisko Gold
Royalties enabling the Company to advance the project without the
dilution of a share issuance."
"Costa Fuego is globally relevant, being one of only a
handful of projects with potential to deliver near-term,
meaningful, new copper supply into a looming global copper supply
shortage."
The Company looks forward to providing updates on the Company's
next steps shortly.
This announcement
is authorised by the Board of Directors
for release to ASX and TSXV.
Hot Chili's
Managing Director and Chief Executive
Officer Mr Christian Easterday is responsible
for this announcement and has provided sign-off for release to the
ASX and TSXV.
For more information please contact:
Christian Easterday
Managing Director – Hot
Chili
|
Tel:
+61 8 9315 9009
Email:
admin@hotchili.net.au
|
Penelope Beattie
Company Secretary – Hot
Chili
|
Tel:
+61 8 9315 9009
Email:
admin@hotchili.net.au
|
Harbor Access
Investor & Public
Relations (Canada)
|
Email:
graham.farrell@harbor-access.com
Email:
jonathan.paterson@harbor-access.com
|
or visit Hot Chili's website at www.hotchili.net.au
Qualifying Statements
Forward Looking Statements
This document contains certain "forward-looking
statements" and "forward-looking information" concerning the
business, operations and financial performance and condition of
Company. Forward-looking statements and forward-looking information
include, but are not limited to, statements with respect
to the timing and ability, if at all, for the completion of
the PFS; the timing and ability, if at all, to complete a resource
upgrade at Costa Fuego; timing of the commencement of the Company's
30,000m drill programme; permitting
and legal processes in relation to mining permitting and approvals;
estimated production and mine life of the various mineral projects
of the Company; the ability to obtain permits for operations;
synergies; the realisation of mineral resource estimates; the
benefits of the development potential of the properties of the
Company; the future price of minerals, including gold, copper, and
silver; the estimation of mineral reserves and resources; success
of exploration activities; and currency exchange rate fluctuations.
Except for statements of historical fact relating to the Company,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterised
by words such as "plan," "expect," "project," "intend," "believe,"
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may", "should" or "will" occur.
Forward-looking statements are based on the opinions and estimates
of the Company at the date the statements are made and are based on
a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. Many of these assumptions are based on
factors and events that are not within the control of the Company
and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include the
results of the
Company's preliminary economic assessment and
planned PFS, as well as future economic studies, the results
of the planned 30,000m drill
programme and their impact on mineral resources and the economic
studies, variations in ore grade or recovery rates, changes in
market conditions, risks relating to the availability and
timeliness of permitting and governmental approvals; risks
relating to international operations, fluctuating metal prices and
currency exchange rates, changes in project parameters, the
possibility of project cost overruns or unanticipated costs and
expenses, labour disputes and other risks of the mining industry,
failure of plant, equipment or processes to operate as
anticipated.
The Company cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base themselves
on forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail and are cautioned not to place undue reliance on
forward-looking statements. The Company believes that the
expectations reflected in those forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press
release.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking statements if
circumstances or the Company's estimates or opinions should change
except as required by applicable securities laws. Any comparative
market information is as of a date prior to the date of this
document.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
This document (the "Document") is to be used by the recipient
for informational purposes only and does not purport to be complete
or contain all the information that may be material to the current
or future business, operations, financial condition, or prospects
of Hot Chili Limited ("Hot Chili" or the "Company"). Each recipient
should perform its own independent investigation and analysis of
Hot Chili, and the information contained in this Document is not a
substitute therefore. Hot Chili makes no representation or
warranty, express or implied, as to the accuracy or completeness of
the information contained in this Document or in any other written
or oral communication transmitted to any recipient by any party.
Except for liability which cannot be disclaimed by law, by
accepting this Document, the recipient agrees that neither Hot
Chili nor any of its officers, directors, employees, or
representatives has any liability for any representations or
warranties, express or implied, contained in, or for any omissions
from, this Document or any such other written or oral communication
from any person.
Certain information contained herein is based on, or derived
from, information provided by independent third-party sources. Hot
Chili believes that such information is accurate and that the
sources from which it has been obtained are reliable; however,
Hot Chili has not independently verified such information and
does not assume any responsibility for the accuracy or completeness
of such information.
This Document should not be considered as a recommendation from
any person to purchase any securities. Each person for whom this
Document is made available should consult its own professional
advisors in making its own independent investigations and
assessment and, after making such independent investigations and
assessments, as it deems necessary, in determining whether to
proceed with any investment in the Company.
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SOURCE Hot Chili Limited