Hot Chili Unveils $14M Share Offer to Accelerate Copper-Gold Growth
Hot Chili Limited has announced a non-renounceable entitlement offer aiming to raise approximately A$14 million to advance its strategic partnering efforts and drilling programs. Eligible shareholders can subscribe for new shares at 60 cents each, with funds earmarked for exploration and corporate purposes.
- Non-renounceable entitlement offer of 2 new shares per 13 held at A$0.60 each
- Target raise of up to A$14 million before costs
- Funds to support strategic partnering and phase-two drilling at La Verde copper-gold discovery
- Shortfall facility allows additional applications by eligible shareholders
- New shares to rank equally and be listed on ASX and TSXV
Capital Raising Overview
Hot Chili Limited (ASX – HCH) has launched a non-renounceable entitlement offer to raise up to approximately A$14 million. Eligible shareholders registered by 5 – 00pm AWST on 8 August 2025 can subscribe for 2 new fully paid ordinary shares for every 13 shares held, at an issue price of A$0.60 per share. The offer opens on 13 August and closes on 2 September 2025, with the company reserving the right to extend these dates.
The offer is designed to provide existing shareholders with a pro-rata opportunity to participate in the company’s next phase of growth, while also enabling Hot Chili to strengthen its balance sheet and fund key operational initiatives.
Use of Funds and Strategic Priorities
Funds raised from the entitlement offer will primarily support the completion of Hot Chili’s asset-level strategic partnering process, which aims to bring in qualified partners to co-fund and develop its projects. This process is ongoing, with several non-binding and conditional proposals currently under review.
Another major focus is the commencement of phase-two diamond drilling at the La Verde copper-gold discovery in Chile’s Atacama region. Following a successful phase-one drilling campaign that defined a significant mineralised footprint, the next drilling phase is expected to facilitate a maiden resource estimate. This could materially enhance the company’s resource base and potentially add higher-grade ore to the Costa Fuego project’s mine life.
Remaining funds will cover corporate costs and general working capital, ensuring operational flexibility as the company advances its exploration and development agenda.
Offer Mechanics and Shareholder Impact
The entitlement offer is not underwritten, introducing some uncertainty around the final subscription level. Eligible shareholders who fully subscribe to their entitlement may also apply for additional shares through a shortfall facility, which the board will allocate at its discretion, prioritising fairness and compliance with takeover regulations.
If the offer is fully subscribed, the company’s issued shares will increase from approximately 153.7 million to 177.4 million, with no expected material change in control. However, partial take-up could lead to dilution for shareholders who do not participate.
New shares issued under the offer will rank equally with existing shares and are expected to be quoted on both the ASX and the TSX Venture Exchange, subject to regulatory approvals.
Risks and Considerations
Investors should be mindful of the speculative nature of mineral exploration and development, including risks related to resource estimation, sovereign factors in Chile, commodity price volatility, and market conditions. The ongoing strategic partnering process carries no guarantee of transaction completion, and the offer’s success depends on shareholder participation amid these uncertainties.
Hot Chili’s management and board have disclosed their holdings and intentions regarding the offer, with some directors committing to fully participate, signaling confidence in the company’s prospects.
Bottom Line?
As Hot Chili embarks on this capital raise, the market will be watching closely for shareholder uptake and the progress of its strategic partnerships and drilling results.
Questions in the middle?
- Will the entitlement offer achieve full subscription given it is not underwritten?
- What outcomes will emerge from the ongoing strategic partnering process?
- How will phase-two drilling at La Verde impact Hot Chili’s resource estimates and valuation?
