Hot Chili Limited has raised about A$40 million through a private placement to accelerate work at its Costa Fuego copper‑gold project on Chile’s coastal belt. The company issued 24,242,425 new fully paid ordinary shares at A$1.65 apiece, with the proceeds earmarked to speed up exploration, fold recent discoveries into the project plan and push key permitting milestones forward.
The deal at a glance – Issuer: Hot Chili Limited (ASX, TSXV, OTCQX). – Raise: 24,242,425 shares at A$1.65 each for gross proceeds of ~A$40m. – Purpose: fund exploration, integrate new targets (notably the La Verde discovery) and advance permitting and environmental work at Costa Fuego.
Why this matters This equity raise provides fresh capital without adding immediate debt—typical for junior miners looking to derisk exploration and meet regulatory milestones before seeking larger development funding. Management says the money will back field programs, update the project model with recent discoveries, and drive the environmental approvals that are pivotal to moving the project toward production.
Who backed the placement Institutional and long‑term stakeholders from Australia, North America and other jurisdictions participated, including Hot Chili’s three largest shareholders. The company frames the capital as a vote of confidence in Costa Fuego, highlighting its status as a notable copper development not owned by a major producer—an attribute investors are watching as markets eye near‑term supply additions.
How the raise was structured To balance speed with cross‑border compliance, the placement combined standard Australian institutional offers and Canadian exemptions: – 13,209,698 shares issued under sections 708(8), (10) and (11) of the Corporations Act 2001 (Cth), raising ~A$21.8m. – 11,032,727 shares sold under Canadian exemptions (NI 45‑106 and Coordinated Blanket Order 45‑935) for gross proceeds of C$17,211,054 (~A$18.2m).
A capital markets syndicate of Veritas Securities Limited, ATB Cormark Capital Markets and Desjardins Capital Markets acted as joint lead managers, with BMO Capital Markets as co‑manager. The company paid a 6.0% cash commission and issued 1,212,121 non‑transferable, unlisted broker options—each exercisable for one share at A$2.145—expiring 30 months after the 12 February close date.
Share issuance specifics and compliance notes In addition to the primary placement, Hot Chili issued 25,454,546 shares under ASX placement capacities: 7,698,365 under the 15% capacity of Listing Rule 7.1 and 17,756,181 under the additional 10% capacity of Listing Rule 7.1A. The Canadian tranche was sold only where no prospectus or filing obligation was triggered and, according to the company, is not subject to a Canadian hold period. The placement remains subject to final acceptance by the TSXV. Full details are in Hot Chili’s ASX announcements dated 2 and 4 February.
Use of proceeds and near‑term goals Net proceeds will cover operational activities, working capital and near‑term project delivery—chiefly incorporating La Verde into the Costa Fuego development plan and advancing the environmental impact assessment (EIA). Management is targeting EIA submission this year, a key step to de‑risking the timeline toward production.
Things for investors to note – Broker options: these create potential dilution only if Hot Chili’s share price exceeds A$2.145 before they expire. – Commissions: the 6% fee increases the effective cost of the raise and should be weighed against the expected benefits from accelerated exploration and permitting. – Disclosure: analysts and investors should review the full ASX and SEDAR+ filings for detailed allocations, timetables and the complete list of assumptions and risks.