Hot Chili’s shares continue fiery run on news of formal deal to buy another copper, gold project in Chile
Hot Chili (ASX:HCH), which — like its name says — was a “hot” topic last week, has cemented a deal that gives it the option to buy a private copper and gold discovery right next to two of its other copper projects.
The copper miner’s shares shot up 93 per cent to close last week out at 2.7c, which nabbed it a grilling from the ASX over the spike.
But Hot Chili pleaded ignorance, saying it didn’t know why and had nothing on the table that could have spurred the sharp rise.
This is not a new deal – Hot Chili announced it in early February. The company has just now made the agreement formal after completing due diligence.
But shares still kept climbing higher this morning, advancing 18.5 per cent to 3.2c not long after market open.
The copper and gold discovery adjoins Hot Chili’s Productora and El Fuego copper projects.
Hot Chili says the acquisition would give it the opportunity to develop both bulk tonnage deposits with a central processing option, “creating one of the premier ASX-listed copper developers”.
Cortadera, one of the discoveries within the ground that Hot Chili is acquiring, has previously delivered thick intersections of up to 864m.
“Cortadera’s results are considered one of the most significant set of copper-gold porphyry discovery drilling intersections since the discovery of SolGold’s (TSX/LSE:SOLG) Cascabel deposit located in Ecuador,” Hot Chili told investors.
Proving just how hot SolGold’s discovery is, last year the Brisbane-based explorer found itself being fought over by mining giants BHP (ASX:BHP) and Newcrest (ASX:NCM) as both vied for a piece of the Cascabel copper and gold project.