Highlights
- A$40M private placement received strong demand from Australian, Canadian and overseas institutional
investors, as well as the Company’s three largest shareholders (Glencore, Blue Spec and GS Group) - Upon completion of the capital raise, the Company will be well funded in 2026 to deliver strong growth
and development milestones for the Costa Fuego copper-gold (Cu-Au) project (“Costa Fuego” or “the
Project”), located in the coastal range of Chile (Figure 1): - Accelerated drilling at the La Verde Cu-Au discovery to deliver an increase in the Company’s
Mineral Resource base, with a focus on delineating a potential higher-grade starter pit for Costa
Fuego - Commencement of Costa Fuego’s feasibility study and integration of La Verde into an
expanded open pit mine schedule - Submission of an Environmental Impact Assessment (EIA) for Costa Fuego in late 2026 and
advancement of Huasco Water - Maintaining funding flexibility to further engage with several prospective strategic partners
engaged in ongoing asset-level strategic partnering processes being led by BMO Capital
Markets - Further drilling, corporate and development updates expected as the Company accelerates its growth and
development plan with strengthened treasury and a rising copper and gold price environment
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (“Hot Chili” or the “Company”) is pleased to announce that it has
successfully arranged a A$40 million private placement to institutional and professional investors through the
issue of 24,242,425 new fully paid ordinary shares (“Shares”) at an offer price of A$1.65 (C$1.56) per Share
(the “Placement”).
Veritas Securities Limited, ATB Cormark Capital Markets and Desjardins Capital Markets acted as joint lead
managers (“JLMs”) and BMO Capital Markets, as a co-manager (together with the JLMs, the “Agents”), to
the Placement. The Placement was oversubscribed and received strong demand from Australian, Canadian
and overseas institutional investors as well as existing substantial shareholders.
The Placement ensures that Costa Fuego remains among the few globally significant copper projects not
controlled by major mining companies, with the potential to contribute substantially to new copper supply this
decade.
Hot Chili’s Managing Director Christian Easterday said:
“We are delighted by the overwhelming support received from new and existing institutional investors,
as well as our top three major shareholders, in the Placement. The strong participation from these
groups highlights the confidence in our strategy to continue driving Hot Chili’s re-rate into a rising copper
market.
Their commitment underpins the Company’s ability to advance key milestones and strengthens our
position as we continue to develop one of the world’s few remaining significant copper projects not
controlled by a major mining company, that could deliver meaningful new copper supply this decade.
These funds place us in a strong position to commence the Costa Fuego feasibility study and to
aggressively accelerate the La Verde Cu-Au discovery drill-out, targeting a potential higher-grade
starter pit for Costa Fuego capable of significantly reducing capital payback timeframes and enhancing
financial metrics.
Market conditions are indicative of a supply-driven, rising copper price cycle and the Company is well
funded to take advantage of controlling the right assets, at the right scale, with a new major discovery,
at the right time.”
Purpose and Use of Funds
The Company continues to receive increasing interest from prospective strategic partners regarding its
advanced Costa Fuego development and associated Huasco Water Supply project. This increased attention,
coupled with a favourable copper price environment, reinforces management’s confidence in accelerating the
Company’s growth and development strategy.
Proceeds from the Placement and existing cash on hand will be used to fund:
- extensional and resource definition drilling at the expanding La Verde Cu-Au discovery to
establish a maiden mineral resource and further define the size, scale and grade of a potential
higher-grade starter pit for Costa Fuego; - exploration drilling of highly prospective look-alike porphyry targets adjacent to La Verde;
- completion and submission of an EIA for Costa Fuego;
- ongoing evaluation of asset-level strategic funding options for the development of the Costa
Fuego and Huasco Water Projects; several non-binding, indicative, incomplete and conditional
offers being assessed; - development of the Huasco Water Project;
- payments for surface rights, rents and patents, tenement maintenance and option payments;
- commencement of the Costa Fuego feasibility study, incorporating La Verde;
- general and administrative expenses and unallocated working capital.
Strategic Partnering Processes Advancing Well
Following completion of the Pre-feasibility Studies (PFS) for Costa Fuego and Huasco Water in March 2025,
Hot Chili initiated an asset-level strategic Partnering Process to introduce one or more qualified partners with
the financial, technical and operational capability to assist in funding and delivering each project.
The Partnering Process continues to progress well. Several additional parties entered the Partnering Process
in late 2025, with the Company subsequently receiving further non-binding, indicative, incomplete and
conditional proposals in relation to potential transactions for the Projects. The Company remains actively
engaged in assessing these proposals, with several parties advancing through due diligence and site visits
recently.
The Partnering Process is ongoing and may result in a range of transactions for the projects. Investors are
cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement.
BMO Capital Markets has been appointed as financial adviser in connection with the Partnering Process.
Details of the Placement
The Company has arranged a Placement of 24,242,425 Shares to raise A$40 million (before costs). The
Placement has been completed in Australia under an offer to investors who qualify as professional or
sophisticated investors under sections 708(8), (10) and (11) of the Corporations Act 2001 (Cth) for aggregate
gross proceeds of approximately A$21,796,002 (13,209,698 Shares), and in Canada by way of private
placement pursuant to Part 5A of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”) as
amended and supplemented by Coordinated Blanket Order 45-935 Exemptions from Certain Conditions of
the Listed Issuer Financing Exemption (“LIFE Exemption”) in each of the provinces and territories of Canada,
other than Quebec, for aggregate gross proceeds of approximately C$17,211,054 (A$18,204,000) or
11,032,727 Shares.
The new Shares will be issued within the Company’s 25% placement capacities under Australian Securities
Exchange (ASX) listing rules 7.1 and 7.1A.
Shares under the Placement will be issued at a price of A$1.65 (C$1.56) each and will rank equally with all
other Shares currently on issue. The issue price of A$1.65 per Share represents a 15% discount to the
Company’s last closing price and a 13.6% discount to the 5-day volume weighted average price of Hot Chili
shares traded on ASX prior to the Company entering into a trading halt on 2 February 2026.
The issue of the Shares under the Placement is expected to occur on 12 February 2026, or on such other
date as the Company and the JLMs may agree.
The Company will pay to the Agents a cash commission equal to 6.0% of the gross proceeds of the Placement
and will issue to the Agents such number of non‐transferable and unlisted options in the Company (the
“Broker Options”) as is equal to 5.0% of the number of Shares issued under the Placement (1,212,121 Broker
Options). Each Broker Option will be exercisable to acquire one Share at a price of A$2.145 per Share on or
before the date that is 30 months following the issue of the Broker Options. The Broker Options will be issued
within the Company’s capacity under ASX listing rule 7.1.
Figure 1. Location of La Verde in relation to Costa Fuego, coastal range Chile
Hot Chili is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.