Corporate Update on Hot Chili Limited’s Chilean Development
Resource Development and Drilling Performance
Hot Chili Limited reported that its La Verde copper‑gold porphyry discovery in Chile continues to yield encouraging drilling results. In the quarter, the addition of a third drill rig enabled several reverse‑circulation and diamond drill holes to intersect high‑grade zones that extend the core of the deposit. Recent assay data confirm broad, near‑surface enrichment, suggesting the feasibility of a starter‑pit option for the larger Costa Fuego project.
Accelerated Pre‑Feasibility and Regulatory Progress
The company has accelerated its pre‑feasibility studies (PFS) by incorporating the La Verde resource into a revised PFS. This updated study will serve as the baseline for evaluating project economics and construction options. Simultaneously, a new environmental impact assessment (EIA) is progressing under a dual‑EIA structure that separates seawater infrastructure from the mining development. The dual‑EIA approach is intended to streamline regulatory review and reduce the overall approval timeline.
Balance‑Sheet Strengthening through Financing Activity
Financing activity has bolstered Hot Chili’s balance sheet. An amended royalty agreement with OR Royalties added $15 million in cash, raising the total royalty consideration to $30 million and expanding the royalty footprint to include La Verde. The company remains debt‑free and maintains a robust cash reserve that supports ongoing exploration and development work.
Strategic Partnering and Project Delivery Focus
Strategically, Hot Chili continues to engage potential partners for Costa Fuego and associated projects. Several non‑binding proposals are in discussion, and a dedicated project‑development team has been established to coordinate engineering, permitting, and finance functions. This organizational shift signals a move from pure exploration to full project delivery.
Operational Highlights and Tenement Management
Operationally, the company completed significant drilling activity in the La Verde and Productora tenements while maintaining a low incident record. Tenement holdings were reviewed, with several concessions expiring and new ones being acquired or re‑issued. This proactive approach ensures a stable portfolio for future development.
Outlook
The quarter reflects steady progress in resource expansion, regulatory advancement, and financial strengthening. These developments position Hot Chili to advance toward a definitive feasibility study and, ultimately, the construction of the Costa Fuego copper‑gold project.
