Capital raise demand Hot as a Chili after record drill results
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Special Report: Copper hopeful Hot Chili has successfully raised $12.1m from the largest institutional investors just over a week after revealing spectacular drilling results.
The company revealed to the ASX today it had raised $12.1m from sophisticated, institutional and professional investors in both Australia and North America, as well as major existing shareholders including Taurus Funds Management and Hot Chili chairman Murray Black.
Hot Chili said the raise had strong demand thanks to the blockbuster copper-gold drill results from Cortadera, made public earlier this month.
The 848m-long intersection graded 0.4 per cent copper and 0.2 grams per tonne (g/t) gold, just 112m from surface, and followed a stunning 750m-long intersection grading 0.6 per cent copper and 0.2g/t gold from 204m depth in July.
The main porphyry at Cortadera is now 1.2km deep, 600m long and about 250m wide on average, the company said.
The capital raise provides near-term funding certainty and a pathway to unlocking one of Chile’s most significant copper-gold porphyry discoveries of the past decade.
Funds will be used to cover the remaining $US3m ($4.4m) part-payment for the first instalment of the Carola option agreement, as well as completion of a 15,000m reverse circulation and diamond drilling program at Cortadera.
Managing director Christian Easterday said the placement was another significant step forward for his company.
“We are very pleased to be attracting new high-quality investors to the company who share our view that Cortadera is showing all the hallmarks of a company-maker,” he said.
“This funding support allows Hot Chili to maintain its ability to control 100 per cent of Cortadera through the most value accretive stages of a major global discovery.
“We will continue to advance its longer-term strategic funding discussions, while focusing our efforts to establish Cortadera’s credentials as one of the world’s top potential stand-alone copper-gold developments.”
>> Now watch: 90 Seconds With… Christian Easterday, Hot Chili