Hot Chili Closes US$15 Million Investment by Osisko Gold Royalties Hot Chili Limited

Hot Chili Closes US$15 Million Investment by Osisko Gold Royalties

Australia-based mining company strengthens cash position and receives endorsement through investment deal

Hot Chili Limited (ASX: HCH) is excited to announce the successful closure of its transaction with Osisko Gold Royalties Ltd, resulting in a significant US$15 million investment. This investment deal involves the sale of a 1. 0% Net Smelter Return (NSR) royalty on copper and a 3% NSR royalty on gold across Hot Chili's Costa Fuego Copper-Gold Project located in Chile's Atacama Region.

Strengthening Cash Position and Project Endorsement

The investment from Osisko Gold Royalties has bolstered Hot Chili's current cash reserves to approximately A$26 million. This infusion of funds provides the company with a strong financial foundation to pursue its growth and development plans.

Furthermore, the investment serves as a testament to the positive outlook and potential of Hot Chili's Costa Fuego project. Osisko Gold Royalties is recognised as one of North America's leading royalty-streaming groups, and their decision to invest in Hot Chili's project underscores its economic viability and future prospects.

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Next Steps for Hot Chili

Hot Chili is now well-equipped to move forward with its expansion plans, which include the following key initiatives:

Commencement of 30,000 m Drill Program: Preparations for the extensive drill program are well underway, and drilling operations are set to begin in the coming weeks.

Completion of Costa Fuego Resource Upgrade: Hot Chili aims to conclude the resource upgrade for the Costa Fuego project by late 2023. This update will provide valuable insights into the project's potential and help guide future operations.

Delivery of Costa Fuego Pre-Feasibility Study (PFS): The company has made substantial progress on the PFS, with approximately 80% completion achieved. Minimal expenditure is required to finalise the study, and its delivery is planned for the second half of 2024.

Hot Chili's Managing Director, Mr. Christian Easterday, expressed his satisfaction with the investment deal, stating, "We are very pleased to have closed the Investment with Osisko Gold Royalties enabling the Company to advance the project without the dilution of a share issuance. " He further highlighted the global significance of the Costa Fuego project, emphasising its potential to deliver new copper supply in the face of an impending global shortage.

Future Updates

Hot Chili anticipates providing further updates on the company's next steps in the near future. This announcement has been authorized by the Board of Directors and will be released to the ASX and TSXV stock exchanges.

Hot Chili's Managing Director and Chief Executive Officer, Mr. Christian Easterday, is responsible for this announcement and has provided sign-off for release to the ASX and TSXV.

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