Dual-listed Hot Chili has executed a memorandum of understanding (MoU) with Puerto Las Losas (PLL) to evaluate bulk tonnage loading alternatives for copper concentrates from the Costa Fuego copper/gold project, in Chile.
The MoU with PLL provides Hot Chili the right, for up to five years, to negotiate a binding port services agreement for the project.
The agreement would include a ‘take-or-pay’ volume clause, based on at least 80% of Costa Fuego’s projected future yearly concentrate production.
Under the agreement, Hot Chili and PLL will undertake a port feasibility study. Hot Chili will fund 20% of this study, which is estimated to cost $4.6-million and take about two years to complete.
Upon completion of the port feasibility study, and provided that a shipping solution for loading copper concentrates is agreed at existing or potential infrastructure in PLL, Hot Chili will have a right of first refusal to ship copper concentrates through PLL's facilities in Huasco Bay for a three-year period.