06/08/2021 - 14:30

Hot Chili raises $40m to complete copper buy

06/08/2021 - 14:30

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Shares in Perth-based Hot Chili have risen by more than 20 per cent after the copper explorer said it had secured funds to complete its purchase of an overseas project.

Hot Chili has raised funds to complete its purchase of the Cortadera copper-gold project in Chile. Photo: Hot Chili

Shares in Perth-based Hot Chili have risen by more than 20 per cent after the copper explorer said it had secured funds to complete its purchase of an overseas project.

Today, Hot Chili said it would use $40 million raised from a private placement and share purchase plan to complete its acquisition of the Cortadera copper-gold discovery in Chile, where the business has been actively exploring. 

The final payment is $US15 million ($A20.3 million).

Hot Chili, which plans to dual list on the Toronto Stock Exchange later this year, will use some of the funds to complete a major resource upgrade and pre-feasibility study for another Chilean project, Costa Feugo.

The placement includes a $14.4 million investment from resources multinational Glencore, announced to the ASX earlier this month.

About 1.1 billion shares will be issued in two tranches under the placement and about 156.3 million shares under the SPP, with both offers price at 3.2 cents. It represents an 11 per cent discount to Hot Chili’s last closing price.

Veritas Securities and Canada’s iA Private Wealth are acting as joint lead managers to the raise.

Shares in Hot Chili closed up 22.2 per cent on the ASX today to trade at 4.4 cents.

Also today, Peak Resources said it had commitments to raise $30 million for its Tanzanian rare earth project.

“The placement will support Peak as it progresses offtake, funding and development milestones for the Ngualla Project and the Teesside Refinery,” Peak managing director Bardin Davis said.

 

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