Hot Chili Expands Copper Resources with La Verde Acquisition
Hot Chili, a leading copper player, has secured an option agreement to acquire 100% ownership of the La Verde copper mine. The mine is located in Chile’s Domeyko mining district, only 30 kilometers from its Costa Fuego copper-gold project. This strategic acquisition will strengthen Hot Chili’s copper-gold assets. By consolidating the La Verde mine, Hot Chili plans to explore and develop a larger copper deposit. This move is expected to enhance its Costa Fuego project and open new growth opportunities.
Exploration and Drilling Activities in Full Swing
Since entering into the agreement, Hot Chili has ramped up exploration efforts in the La Verde area. The company has already conducted soil geochemistry, geological mapping, and magnetic surveys as part of its due diligence process. On October 30, 2024, Hot Chili launched its initial drilling program at La Verde, which includes 11 RC drill holes totaling 4,000 meters. Although assay results are pending, early visual inspections show promising porphyry-style copper mineralization, suggesting the potential for valuable deposits.
Financial Commitments and Agreement Terms
The option agreement for La Verde includes structured cash payments to the current concession holder, SLM Dominiceros. The agreement outlines the following payment schedule: $320,000 upon signing, $680,000 due within 12 months, $1 million within 24 months, and a final payment of $6.89 million at the 36-month mark when Hot Chili exercises its option to acquire full ownership.
Strengthening Costa Fuego and Supporting Regional Growth
This acquisition plays a crucial role in Hot Chili’s strategy to expand and consolidate its resources in the Domeyko region. By adding La Verde to its portfolio, the company is poised to increase both bulk tonnage and high-grade copper-gold resources. This move will significantly enhance the economic viability of the Costa Fuego hub. Additionally, Hot Chili continues to advance key technical and environmental studies, such as the Prefeasibility Study (PFS) and Environmental Impact Statement (EIA), to ensure the long-term success of the project. With a strong financial position, Hot Chili is well-equipped to drive forward the development of its projects and maximize the value of its resources.
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