Hot Chili confirms Glencore copper concentrate deal

HOT Chili has confirmed it will sell 60% of its planned copper concentrate production from its planned Costa Fuego copper-gold development in Chile to Glencore.
 Hot Chili confirms Glencore copper concentrate deal  Hot Chili confirms Glencore copper concentrate deal  Hot Chili confirms Glencore copper concentrate deal  Hot Chili confirms Glencore copper concentrate deal  Hot Chili confirms Glencore copper concentrate deal

A point of departure for future Hot Chili concentrate production

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.