Hot Chili and Glencore sign agreement on Costa Fuego copper mine project inChile

Seetao 2022-03-07 15:19
  • The development of this copper mine will provide Chile with sufficient copper resources and raw materials fornew technological equipment
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Mineral explorer Hot Chili has signed an offtake agreement with trading and mining company Glencore for its Costa Fuego copper-gold project in Chile. The deal allows Glencore to purchase 60% of the copper concentrate from the Costa Fuego project within eight years after commercial production begins.

Glencore has become Hot Chili's largest shareholder with a 9.96% stake after investing in August last year and participating in the company's most recent funding round in TSXV in December 2021. Christian Easterday, Managing Director of Hot Chili, said: “Glencore’s 2021 equity investment and the execution of this offtake agreement on commercially competitive terms continue to externally validate the quality of Costa Fuego. “We have ensured flexibility in project financing. , 40% of our first eight years of concentrate production remains uncommitted before launching project financing discussions in 2022, following the completion of the Costa Fuego pre-feasibility study. "

The Costa Fuego copper project consists of the Cortadera porphyry copper-gold deposit and the Productora copper-gold deposit. Hot Chili intends to advance the project through preliminary feasibility studies and testing of several high-priority exploration targets.

Productora is 100% owned by the Chilean registered company Sociedad Minera El Aguila (SMEA), a joint venture 80% owned by Sociedad Minera El Corazon Limitada, a subsidiary of Hot Chili. CMP Productor, a subsidiary of Compania Mineradel Pacifico (CMP), owns the remaining 20% of the project. Keywords: engineering construction, engineering news

Cortadera is 100% owned by the Chilean registered company Sociedad Minera La Frontera, a subsidiary of Hot Chilli. The deposit is said to contain a higher grade 104Mt composition with a CuEq of 0.74%. In July 2020, Hot Chili began mining at its Productora copper-gold project.Editor/XingWentao