Hot Chili signs copper deal with Glencore
PERTH (miningweekly.com) – Copper developer Hot Chili has inked an offtake agreement with major Glencore for future copper concentrate production from the Costa Fuego copper/gold project, in Chile.
The Glencore offtake agreement covers 60% of copper concentrate from Costa Fuego for eight years from the start of commercial production and is on arms-length commercially competitive benchmark terms.
Glencore holds a 9.96% interest in Hot Chili, following its strategic investment in August last year, and subsequent participation in the company’s recent TSX-V capital raising in December.
Glencore has the right to board representation and participation in a technical steering committee. These rights remain subject to Glencore holding at least 7.5% of the share capital of Hot Chili.
“The quality of Costa Fuego continues to be externally validated with Glencore’s 2021 equity investments and the execution of this offtake agreement on commercially competitive terms,” Hot Chili MD Christian Easterday said.
“We ensured project financing flexibility with 40% of our first eight years of concentrate production remaining uncommitted ahead of initiating project financing discussions in 2022, following completion of the Costa Fuego prefeasibility study.
“Glencore’s expertise and support is welcomed and is an important part of our strategy to successfully transform the company into a material copper/gold producer.”
Costa Fuego is estimated to host 2.9-million tonnes of copper, 2.7-million ounces of gold, 9.9-million ounces of silver and 64 000 t of molybdenum, and consists of the Cortadera, Productora and El Fuego projects.
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