Hot Chili Limited has announced a A$24.9 million private placement to fund the Costa Fuego copper-gold project. Additionally, the company plans to undertake a share purchase plan to raise up to an additional AU$5 million.
Funding objectives
The funds raised will be used to complete studies related to Costa Fuego, as well as for exploration, drilling and working capital activities. Hot Chili CEO Christian Easterday said interest from potential strategic financiers has increased, giving them confidence to accelerate the company’s growth while maintaining control of assets.
Importance of Costa Fuego
Easterday highlighted that Costa Fuego is one of the few copper developments in the world that is not in the hands of a major mining company. This would mean a significant new source of copper supply for this decade, at a time when a lack of supply is expected in the market.
Market conditions
The copper market is in the early stages of a new price cycle, driven by a shortage of new supply. Therefore, Hot Chili Limited is well funded to take advantage of the opportunities at this time and place.
