Hot Chili Ltd has announced a strategic investment by Glencore to acquire a 9.99% interest in the company.
The Glencore investment is a positive endorsement of the Hot Chili’s Costa Fuego copper-gold project as it progresses to become a globally significant, low-altitude development.
The company has entered into a binding agreement with Glencore for a AUS$14.4 million strategic investment to acquire a 9.99% interest in Hot Chili. Glencore is one of the largest natural resource companies in the world, providing strong support for the completion of a feasibility study and development of Cost Fuego.
Glencore will have the right to appoint a Director to the Board of Hot Chili, and the right to appoint members to a Technical Steering Committee to advise on operational matters. Furthermore, the company will undertake to grant Glencore offtake agreements over 60% of concentrate produced for a period of 8 years from commercial production on arms-length commercially competitive benchmark terms. These rights are subject to Glencore holding at least 7.5% of the share capital of Hot Chili, except where Glencore did not have the opportunity to participate in a dilution event.
The addition of Glencore as a strategic investor will allow the Company to draw on Glencore’s expertise in project development and production.
Christian Easterday, Managing Director of Hot Chili, comments:
“Hot Chili welcomes the strategic alignment with Glencore, especially as the company moves toward a dual listing on the TSX Venture exchange by the end of 2021.”
“We view this as a significant milestone event and a strong endorsement by Glencore.”
“We believe Glencore will make an excellent partner in the development of Costa Fuego and are a testament to Hot Chili’s staff and consultants who are working tirelessly to transition Hot Chili into a Tier-1 copper developer.”