Hot Chili’s Expansion Hinges on Assay Results and Partnering Progress
Hot Chili Limited has successfully raised A$14.1 million through a fully subscribed entitlement offer to advance its Costa Fuego copper-gold project in Chile, initiating a critical second phase of diamond drilling at the La Verde discovery.
- A$14.1 million raised via fully subscribed entitlement offer
- Phase-two diamond drilling commenced at La Verde porphyry discovery
- Regulatory approval secured to expand drilling coverage
- Strategic partnering process advancing with BMO Capital Markets
- Strong cash position of A$13.8 million at quarter end
Funding Milestone Achieved
Hot Chili Limited has closed a non-renounceable entitlement offer, raising A$14.1 million before costs. This fully subscribed capital injection is earmarked to fund the next stage of development at the company’s flagship Costa Fuego copper-gold project in Chile. The offer attracted strong demand from shareholders across Australia, Canada, and internationally, underscoring confidence in Hot Chili’s growth strategy.
Advancing Exploration at La Verde
Following the successful first-pass reverse circulation drilling that revealed a significant copper footprint, Hot Chili has commenced phase-two diamond drilling at the La Verde porphyry discovery. This program aims to expand the known mineralised footprint both laterally and at depth, targeting higher-grade zones that could materially enhance the project’s economics. Early visual results from three completed diamond holes show promising porphyry-style mineralisation, with assay results pending.
Regulatory and Strategic Progress
In October, Hot Chili secured regulatory approval to expand drilling coverage at La Verde, a critical step allowing the company to test additional targets and potential district-scale copper porphyry clusters. Concurrently, the company is advancing an asset-level strategic partnering process led by BMO Capital Markets. This initiative seeks to introduce qualified partners to support funding and operational delivery for Costa Fuego and the Huasco Water projects, reflecting a proactive approach to de-risking development and accelerating project timelines.
Operational and Financial Health
The September 2025 quarterly report highlights no lost time injuries, reflecting Hot Chili’s commitment to health, safety, and environmental standards. Financially, the company maintains a robust cash position of A$13.8 million at quarter end, supported by disciplined capital management and the recent entitlement offer proceeds. Exploration and evaluation expenditures continue as planned, with a focus on delivering a maiden mineral resource estimate at La Verde to underpin future feasibility studies.
Looking Ahead
Hot Chili’s progress at Costa Fuego is a compelling story of methodical advancement from exploration success to development readiness. The combination of fresh capital, regulatory green lights, and strategic partnerships positions the company well to unlock the full potential of its Chilean copper-gold assets. Investors will be watching closely for upcoming assay results and further updates on partnering discussions, which will be pivotal in shaping the project’s next phase.
Bottom Line?
With funding secured and drilling expanding, Hot Chili is poised to deepen its footprint at Costa Fuego, but assay results and partner commitments remain key near-term catalysts.
Questions in the middle?
- What will the upcoming assay results reveal about the grade and extent of mineralisation at La Verde?
- How will the strategic partnering process influence Hot Chili’s funding structure and project timeline?
- What are the potential impacts of regulatory approvals on the pace and scale of drilling activities?
