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Hot Chili Limited Secures $15 Million Investment for Costa Fuego Copper-Gold Project with Osisko Gold Royalties Ltd Hot Chili Limited

Hot Chili Limited Secures $15 Million Investment for Costa Fuego Copper-Gold Project with Osisko Gold Royalties Ltd

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Hot Chili Limited (ASX: HCH), an Australian mining company, has announced a significant milestone in the development of its Costa Fuego Copper-Gold Project in Chile. The company has executed a binding investment agreement with Osisko Gold Royalties Ltd (Osisko), a prominent Canadian royalty and streaming company.

Under the agreement, Hot Chili will receive a cash investment of US$15 million from Osisko in exchange for a 1. 0% net smelter return (NSR) royalty on copper and a 3. 0% NSR royalty on gold across the Costa Fuego project. The transaction is set to be completed within weeks, pending customary conditions.

The funds from the agreement will be utilised by Hot Chili to advance various aspects of the project including pre-feasibility studies, resource growth drilling programs, and general project development.

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This investment is a significant endorsement of the Costa Fuego project, highlighting Hot Chili's commitment to ensuring its success.

Hot Chili's managing director, Christian Easterday, expressed his excitement about the agreement, stating that it brings the Costa Fuego project one step closer to production. He further emphasised that this funding option does not dilute the company's shareholders, while also providing strong financial support and retaining exposure to copper and gold price movements.

Additionally, Hot Chili has safeguarded its interests by including buyback rights in the event of a change of control before the fourth anniversary of the transaction's closing. The company has also granted Osisko a right of first offer for any future royalty, stream, or similar interests that Hot Chili wishes to sell.

The execution of this investment agreement demonstrates the confidence placed in Hot Chili's Costa Fuego project by Osisko, which is renowned for its technical rigour and capabilities. This partnership sets the stage for further growth and development of one of the largest copper-gold projects in the Americas.

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