The concentrate will be sold "on arms-length commercially competitive benchmark terms".

The deal was flagged last year when Glencore acquired a 9.99% stake in Hot Chili for A$14.4 million.

While all relevant Costa Fuego development, production and financial metrics won't be available till the completion of a prefeasibility study in the third quarter of this year, the possibilities with Glencore could involve 40,000t per annum of copper in concentrate.

That envisages the project being a 16-20 million tonne per annum processing operation producing in excess of 65,000tpa of copper equivalent metal in concentrate.

Costa Fuego has current resources of more than 700Mt grading 0.46% copper equivalent.

Last quarter Hot Chili dual listed on Canada's TSX-V exchange, raising C$33.8 million in the process.

Shares in Hot Chili were up 17% to A$1.59 in midday trade, capitalising the company at $175 million.