https://www.engineeringnews.co.za

Hot Chili to sign infrastructure deal for Productora

Hot Chili to sign infrastructure deal for Productora

Photo by Bloomberg

30th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Junior copper developer Hot Chili on Monday told shareholders that it was on the cusp of signing a memorandum of understanding with Chilean major Compania Minera del Pacifico SA (CMP) over a joint infrastructure agreement for its Productora project.

The proposed joint infrastructure agreement would ensure that the Productora project would be developed in cooperation with, and to the mutual benefit of both Hot Chili and CMP.

The proposed agreement would unlock significant operational synergies for both companies and would allow Productora to be developed in a shortened timeframe.

Productora currently has an ore reserve of 90.5-million tonnes, grading 0.48% copper, 0.11 g/t gold and 172 parts per million (ppm) molybdenum, as well as a resource of some 214.3-million tonnes, grading 0.48% copper, 0.1 g/t gold and 138 ppm molybdenum for one-million tonnes of contained copper, 675 000 oz of gold and 29 000 t of molybdenum.

Meanwhile, Hot Chili also announced on Monday that it had executed a credit agreement with Canadian resource financier Sprott Resource Lending Partnership for a $25-million debt facility.

An initial $10-million had been drawn down under the facility, which was initially announced in May this year. The $10-million would help fund development activities at Productora, including the completion of a prefeasibility study, further drilling and initial work on a definitive feasibility study.

The remainder of the debt facility could be drawn down on the grant of further security, or on Hot Chili reaching an agreement and implementing the joint infrastructure agreement with CMP.

Hot Chili told shareholders that the company was also continuing discussions with several other companies, giving interested parties access to the data room, for further funding and development agreements.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Beneficiation Academy
The Beneficiation Academy

The Beneficiation Academy is a certified training institution that follows all compliance legislation and is accredited with various Sector...

VISIT SHOWROOM 
Sulzer Pumps (SA) (Pty) Ltd
Sulzer Pumps (SA) (Pty) Ltd

Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.047 0.939s - 140pq - 2rq
Subscribe Now