#Hot Chili Limited #Australia #La Verde #Costa Fuego #Perth

Hot Chili Limited's Recent Progress

Hot Chili Limited recently unveiled its quarterly report for the period ending September 30, 2025, showcasing considerable advancement in the Costa Fuego copper-gold project in Chile. With a successful entitlement offer raising A$14.1 million, the company is now poised to accelerate its development efforts, particularly at the La Verde site, situated approximately 30 kilometers south of Costa Fuego.

The funding acquired from the fully subscribed entitlement offer will significantly enhance Hot Chili's operational capabilities. This capital injection strengthens the financial position of the company, allowing them to direct resources towards essential milestones in the Costa Fuego copper-gold project, which include ongoing drilling initiatives aimed at expanding mineral resource estimates.

Overview of the Entitlement Offer

In early September 2025, Hot Chili announced their entitlement offer to eligible shareholders, offering new shares at A$0.60 each. The overwhelming participation from investors not only confirms their confidence in the company’s potential but also enables the company to push forward with crucial activities, particularly diamond drilling at La Verde, designed to significantly expand the existing mineral footprint.

Diamond Drilling Operations Have Begun

One of the most exciting developments from the quarterly report was the commencement of phase two diamond drilling operations at the La Verde copper-gold discovery site. This intensive drilling program began around September 22, 2025, employing one drill rig operating on a double-shift schedule. Following a successful initial round of reverse circulation drilling earlier, which confirmed a significant copper mineralization footprint, the current focus is anticipated to yield important results that may facilitate a maiden mineral resource estimate.

The phase-two drilling program aims to delve deeper, targeting higher-grade copper centers as they explore further depth at La Verde. With results pending from multiple drill holes already completed, the anticipation surrounding forthcoming assay results is palpable.

Regulatory Approvals and Expansion Possibilities

In early October, the company secured regulatory approval to expand their drill coverage across La Verde. This allows Hot Chili to test both lateral and along-strike extensions, potentially uncovering further mineralization. The assessment of three additional nearby targets also promises the possibility of developing a district-scale copper porphyry cluster.

Strategic Partnering Process

Alongside drilling activities, Hot Chili is actively advancing a strategic partnering process, with BMO Capital Markets leading efforts to introduce qualified partners capable of supporting the funding and execution of their Costa Fuego and Huasco Water projects. The company has seen increased interest in this regard, indicating a promising trajectory for future growth and stakeholder engagement.

Cash Position and Financial Outlook

The current cash balance for Hot Chili stands at A$13.8 million with no outstanding debt, a solid indicator of their financial health. However, it is critical to note that funding of approximately US$1.27 billion is projected to be required to complete the development phases associated with the Costa Fuego project. This emphasizes the importance of effective stakeholder collaboration and the necessity for further capital raising endeavors.

The quarter did not include substantive mining production, as activities were concentrated on exploration and preparatory efforts related to the Costa Fuego and La Verde projects.

Conclusion

In summary, Hot Chili Limited's recent quarterly report highlights not only significant financial developments through the A$14.1 million entitlement offer but also noteworthy advancements in their drilling operations at La Verde. Investors and stakeholders will be eager to watch how the forthcoming assay results and further regulatory approvals shape the project's trajectory. With a strong cash position and strategic plans in place, Hot Chili is well-positioned to capitalize on the opportunities that lie ahead in the copper-gold sector.