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Hot Chili Limited (ASX:HCH)

ALERT: Price-sensitive ASX Announcement for HCH
Current share price for HCH : $1.585 -0.315 (-16.58%)+
Announcement
Release
7 Jul 2026 8:30AM
Price at Release
$1.900
Full Release
download
Summary
Hot Chili Limited has secured an additional US$15 million from OR Royalties Inc., bringing the total royalty consideration to US$30 million. This funding is non-dilutive and will support the advancement of the La Verde and Costa Fuego Projects. The amended agreement includes a Net Smelter Return royalty on La Verde, a significant move as La Verde currently lacks a defined mineral resource estimate. The company has also updated its mineral resources to 798 Mt Indicated as of February 2024. OR holds a Right of First Offer on future similar interests, and the royalty can be reduced under specific conditions prior to the fourth anniversary of the original agreement.
Key Points
  • Hot Chili Limited secured US$15 million in additional non-dilutive funding through an amended agreement with OR Royalties Inc.
  • The total royalty consideration from OR now amounts to US$30 million.
  • The agreement includes granting OR a Net Smelter Return (NSR) royalty on the La Verde Project, part of the Costa Fuego Project.
  • The funding is intended for exploration and development at La Verde and Costa Fuego.
  • La Verde does not yet have a defined mineral resource estimate, highlighting the potential exploration opportunity.
  • Hot Chili updated its mineral resources to a 798 Mt Indicated Mineral Resource as of February 2024.
  • The OR NSR royalty can be reduced prior to the fourth anniversary of the original royalty closing under certain conditions.
  • OR holds a Right of First Offer (ROFO) concerning future royalty or similar interest sales by Hot Chili.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.