Hot Chili to focus on growing Cortadera after extending the project acquisition
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Special Report: Hot Chili can now focus on growing its Cortadera discovery towards a large maiden resource after securing an extension to the remaining payments for its acquisition.
The company executed an extension agreement with private Chilean mining group SCM Carola that will give it until mid-July 2021 to pay the next $US10m ($16m) and mid-July 2022 to pay the remaining $US15m.
In consideration for the 12 month extension, Hot Chili (ASX:HCH) will pay a fee of $US2m to SCM Carola on or before 15 July this year.
The revised payment schedule reduces its funding requirements this year and provides more time to focus on growing the Cortadera copper-gold discovery.
“We have secured a long runway for Cortadera to be transformed into one of the world’s leading large copper-gold developments, well in advance of our next acquisition payment next year,” managing director Christian Easterday said.
“The extension agreement reinforces our strong relationship with SCM Carola and the company’s commitment toward the rapid growth and development of Cortadera.
“We also recently announced our acceptance of an offer from the Chilean government agency ENAMI for lease mining and processing of high grade ore from the company’s neighbouring Productora copper-gold project.”
Hot Chili has scored multiple world-class drill results from its campaign at the main Cuerpo-3 porphyry at Cortadera.
Its most recent result in late March, and the sixth from Cortadera since July last year, recorded a 542m intersection grading 0.5 per cent copper and 0.2 grams per tonne (g/t) gold from 422m down-hole.
This includes a higher-grade zone of 218m at 0.7 per cent copper and 0.2g/t gold with additional silver and molybdenum credits that extends the strike length of the high-grade core to over 500m, 200m in width and extending from 200m vertical depth.
Results are also expected from two deep reverse circulation pre-collars across the Cuerpo 3 North target about 500m north of the main porphyry and the next expansion diamond hole – a 250m step-out.
Hot Chili also flagged that in the coming weeks it will re-commence expansion drilling, which was temporarily suspended in response to the COVID-19 pandemic.