Hot Chili and Glencore sign agreement on Costa Fuego copper mine project inChile
- The development of this copper mine will provide Chile with sufficient copper resources and raw materials fornew technological equipment
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