Half-Yearly Report: Hot Chili Limited and Controlled Entities Interim Financial Report for the Half-Year Ended 31 December 2024
PR Newswire
PERTH, Australia, March 14, 2025
PERTH, Australia, March 14, 2025 /PRNewswire/ -
Review of Operations
Highlights
-- Hot Chili adds former La Verde Copper Mine (La Verde) to its Costa Fuego
coastal copper hub and confirms significant Cu-Au porphyry discovery.
-- Costa Fuego Cu-Au Pre-feasibility Study $(PFS)$: Final Stages Underway.
-- Huasco Water -- Water Supply PFS: Nearing Completion.
-- 31 December 2024 cash position A$19 million.
Hot Chili Confirms Major Cu-Au Porphyry Discovery at La Verde
On 11 February 2025, the Company announced new drill results from ten Reverse Circulation $(RC)$ drill holes, confirming La Verde as a significant copper-gold porphyry discovery in low elevation coastal Chile, with broad, consistently mineralised intersections extending over 300 m vertically, commencing at shallow depths.
Drilling confirms scale & growth potential*
-- Wide, shallow mineralisation -- current discovery footprint extends 550 m
by 400 m and remains open in all directions.
-- Deeper potential remains untapped -- Mineralisation commences from
shallow depths, extends to more than 300m below surface, and 8 of 12
drill holes reported to date end in mineralisation at the limit of RC
drilling depth capability.
-- Gravel cover masking potentially much larger porphyry system -- step-out
drilling underway.
-- Potential below the historical oxide copper open pit untested -- drill
testing yet to commence.
-- Major discovery in its infancy -- every drill hole has intersected
porphyry-style, copper-gold mineralisation (refer to Table 1 for details
on significant intercepts).
As at 11 February 2025, Hot Chili had completed 19 RC drill holes (5,700 m) at La Verde, with assay results from 12 holes reported so far confirming a major copper-gold porphyry discovery* in Chile's coastal range, with assays pending for seven additional RC holes, with geological logging confirming the presence of porphyry host-rock featuring porphyry-style A- and B-type veining in each of the pending drill holes.
Diamond drilling being planned, targeting potential for deeper, higher-grade zones intersected at depth and to test potential for +1km vertical depth extent, typical of other recent major porphyry discoveries, such as Hot Chili's neighbouring Cortadera discovery, *La Verde Mineral Exploration/Exploration Target Area: Exploration targets and/or Exploration zones and/or Exploration areas are speculative and there is no certainy that any future work or evaluation will lead to the definition of a mineral resource.
Adjacent Properties: The Company has no interest in, or rights to, any of the adjacent properties mentioned, and exploration results on adjacent properties are not necessarily indicative of mineralization on the Company's properties. Any references to exploration results or mineral occurrences on adjacent properties are provided for information only and do not imply any certainty of achieving similar results on the Company's properties. Notes to Table 1: Significant intercepts for La Verde are calculated above a nominal cut-off grade of 0.2% Cu. Where appropriate, significant intersections may contain up to 30m down-hole distance of internal dilution (less than 0.2% Cu). Significant intersections are separated where internal dilution is greater than 30m down-hole distance. The selection of 0.2% Cu for significant intersection cut-off grade is aligned with marginal economic cut-off grade for bulk tonnage polymetallic copper deposits of similar grade in Chile and elsewhere in the world. (1) Previously released significant intercepts. See announcement dated 18(th) December 2024
Hot Chili adds La Verde to its Costa Fuego Coastal Copper Hub
In November 2024, Hot Chili executed an Option Agreement to acquire a 100% interest in the historical La Verde Copper Mine (La Verde), located 30 km south of the Company's low-altitude, Costa Fuego copper-gold project in Chile (Figure 1).
La Verde encompasses 800m strike length of open pit workings, previously exploited by private interests for shallow copper-oxide mineralisation.
The La Verde Option Agreement, along with the recently executed Domeyko Option Agreement (see announcement dated 30(th) April 2024), for the first time consolidates and provides access to, a much larger potential porphyry copper deposit footprint measuring approximately 1.4km by 1.2km, based on geophysical surveys.
The material terms of the executed La Verde Option Agreement are as follows:
Hot Chili's 100% owned subsidiary Sociedad Minera La Frontera SpA ("Frontera") has executed a definitive option agreement with SLM Los Dominiceros una de la Sierra Los Chiqueros ("SLM Dominoceros"), the holder of a 100% interest in the concession comprising La Verde, for the grant to Frontera of an option to acquire a 100% interest in the La Verde concession ("La Verde Option Agreement").
-- Non-refundable cash payment of US$320,000 to SLM Dominoceros upon grant
of the La Verde Option Agreement.
-- Non-refundable cash payment of US$680,000 within 12 months from the grant
of the La Verde Option Agreement.
-- Non-refundable cash payment of US$1,000,000 within 24 months from the
grant of the La Verde Option Agreement.
-- Option may be exercised within 36 months of the date of grant of the La
Verde Option for a final non-refundable cash payment of US$6,890,000.
Costa Fuego Cu-Au Pre-feasibility Study (PFS): Final Stages Underway
During the period, Hot Chili completed key workstreams for Costa Fuego's PFS and Environmental Impact Assessment $(EIA)$, achieving milestones in metallurgy, mining, infrastructure, and environmental planning.
Metallurgy
-- Finalized metallurgical testwork using Nova Mineralis Novaminore$(R)$ technology, which leverages saline water and regulated irrigation cycles for enhanced chalcopyrite recovery from heap leaching of low grade mineralisation. -- Demonstrated reduced freshwater dependency, aligning with Costa Fuego's planned seawater processing. -- Results informed predictive models for copper recovery and acid consumption, optimizing the mine schedule.
Mining
-- Mine scheduling finalised using advanced software, incorporating feed
from four open pits (Productora, Cortadera, Alice, and San Antonio) and
an underground block cave at Cortadera.
-- Multiple schedule iterations prioritized lower pre-start capital, faster
payback, and optimized production rates.
-- Initial capital and operating cost estimates were completed, with further
optimization underway for inclusion in the PFS financial model.
Infrastructure
-- Finalized site layout, including placement of heap/dump leach pads, waste
dumps, stockpiles, mill site, tailings storage, and support buildings.
-- Integrated surface water management systems, including diversion channels
and dewatering infrastructure.
-- Ongoing road optimization to align with the mining schedule.
Environment
-- Advanced EIA preparation with additional hydrogeological and geotechnical
investigations planned for 2025.
-- Completed collection of 122 rock samples for acid rock drainage $(ARD)$ and
metal leaching $(ML)$ tests to inform long-term infrastructure and mine
closure planning.
-- Conducted baseline environmental studies and integrated results into
design decisions.
Huasco Water -- Water Supply PFS: Nearing Completion
During the quarter, Hot Chili's 80% owned subsidiary company Huasco Water continued to progress its PFS-level, water supply Business Case Study. Key deliverables finalised this quarter by international engineering firm ILF Group, include:
-- Evaluation of marine works and the conveyance system to Costa Fuego and
other potential third-party off-takers
-- Completion of trade-off studies, including desalination plant (technology,
location, and sizing), and pipeline configuration (routing and location
of pumping stations) for potential third party off-takers. Note that
Costa Fuego does not require desalinated water for processing.
-- Optimisation of capital cost estimates for the initial stage of seawater
supply to Costa Fuego
-- Options for third party water supply, including desalinated water,
continue to advance
Huasco Water controls the only active granted maritime water concession and most of the necessary permits to provide non-continental water supply to the Huasco Valley, following over a decade of permitting advancement for Hot Chili's coastal range Costa Fuego copper-gold project.
Uniquely, Huasco Water represents an opportunity for Hot Chili to potentially outsource its water infrastructure capital requirements in addition to providing significant additional funding optionality for Costa Fuego.
Hot Chili is continuing its discussions with potential water off-takers in the Huasco Valley and is also engaging with major water infrastructure groups in relation to potential partnership opportunities for financing and development of Huasco Water's future industrial water infrastructure.
Qualifying Statements
The Mineral Resource summary for the Costa Fuego Project is presented in Table 2.
(1) Mineral Resources are reported on a 100% Basis - combining Mineral
Resource estimates for the Cortadera, Productora, Alice and San Antonio
deposits. All figures are rounded, reported to appropriate significant
figures and reported in accordance with the Joint Ore Reserves Committee
Code (2012) and NI 43-101. Mineral Resource estimation practices are in
accordance with CIM Estimation of Mineral Resource and Mineral Reserve
Best Practice Guidelines (November 29, 2019) and CIM Environmental,
Social and Governance Guidelines for Mineral Resources and Mineral
Reserve Estimation (September 8, 2023) and reported in accordance CIM
Definition Standards for Mineral Resources and Mineral Reserves (May 10,
2014) that are incorporated by reference into NI 43-101.
(2) The Productora deposit is 100% owned by Chilean incorporated company
Sociedad Minera El Aguila SpA $(SMEA.UK)$. SMEA is a joint venture (JV)
company -- 80% owned by Sociedad Minera El Corazón Limitada (a 100%
subsidiary of Hot Chili Limited), and 20% owned by Compañía
Minera del Pacífico S.A $(CMP)$.
(3) The Cortadera deposit is controlled by a Chilean incorporated company
Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary
company -- 100% owned by Sociedad Minera El Corazón Limitada, which
is a 100% subsidiary of Hot Chili Limited.
(4) The San Antonio deposit is controlled through Frontera (100% owned by
Sociedad Minera El Corazón Limitada, which is a 100% subsidiary of
Hot Chili Limited) and Frontera has an Option Agreement to earn a 100%
interest.
(5) The Mineral Resource Estimates in the tables above form coherent bodies
of mineralisation that are considered amenable to a combination of open
pit and underground extraction methods based on the following
parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$
1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz.
(6) All Mineral Resource Estimates were assessed for Reasonable Prospects of
Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave
Extraction mining methods at Cortadera and Open Pit mining methods at
Productora, Alice and San Antonio.
(7) Metallurgical recovery averages for each deposit consider Indicated +
Inferred material and are weighted to combine sulphide flotation and
oxide leaching performance. Process recoveries:
Cortadera -- Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36%
Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x
Ag(g/t)
San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63%
Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x
Ag(g/t)
Alice - Weighted recoveries of 81% Cu, 47% Au, 52% Mo and 37%
Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x
Ag(g/t)
Productora -- Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18%
Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x
Ag(g/t)
Costa Fuego -- Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%)
= Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t)
(8) Copper Equivalent (CuEq) grades are calculated based on the formula:
CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo
ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au
price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t
× Ag_recovery)) / (Cu price 1% per tonne × Cu recovery). The
base case cut-off grade for Mineral Resources considered amenable to
open pit extraction methods at the Cortadera, Productora, Alice and San
Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral
Resources considered amenable to underground extraction methods at the
Cortadera deposit is 0.27% CuEq.
(9) Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. These Mineral Resource estimates include Inferred
Mineral Resources that are considered too speculative geologically to
have economic considerations applied to them that would enable them to
be categorised as Mineral Reserves. It is reasonably expected that the
majority of Inferred mineral resources could be upgraded to Measured or
Indicated Mineral Resources with continued exploration.
(10) The effective date of the estimate of Mineral Resources for the period
ending June 30 2024 is February 23rd, 2024. Refer to ASX Announcement
"Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project
Increases to 798 Mt " for JORC Table 1 information in this statement
related to the Costa Fuego Mineral Resource Estimate $(MRE.AU)$ by Competent
Person Elizabeth Haren, who is also a qualified person (within the
meaning of NI 43-101) constituting the MREs of Cortadera, Productora,
Alice and San Antonio (which combine to form Costa Fuego). Hot Chili
confirms it is not aware of any new information or data that materially
affects the information included in the Resource Announcement and all
material assumptions and technical parameters stated for the Mineral
Resource Estimates in the Resource Announcement continue to apply and
have not materially changed.
(11) Hot Chili Limited is not aware of political, environmental or other
risks that could materially affect the potential development of the
Mineral Resources.
The references to mineral resource estimates in this Half-yearly Report have been extracted from the estimate of mineral resources contained in the Company's announcement to ASX dated 26 February 2024 "Hot Chili Indicated Resource at Costa Fuego Copper-Gold Project Increases to 798 Mt", a copy of which is available on the Company's website at www.hotchili. net.au/investors/asx-announcements/. The Company confirms that it is not aware of any new information or data that materially affects the information included in this report about the Company's mineral resources and that all material assumptions and technical parameters underpinning the mineral resource estimates continue to apply and have not materially changed.
The references to exploration results in this Annual Report have been extracted from the Company's announcements to ASX dated 3 August 2023, "Hot Chili Commences 30,000m Drill Programme at Costa Fuego Copper-Gold Project", 28 August 2023, "Hot Chili Signs Binding Letter of Intent for Option to Acquire Cometa Project in Chile", 15 November 2023 "Hot Chili Continues to Expand its Costa Fuego Coastal Copper Hub in Chile", 23 January 2024, "Hot Chili Commences Next Phase of Resource Expansion Drilling Programme at Costa Fuego" and 30 April 2024 "Hot Chili Secures Large Addition to its Costa Fuego Coastal Copper Hub in Chile", copies of which are available on the Company's website at www.hotchili.net.au/investors/asx-announcements/. The Company confirms that it is not aware of any new information or data that materially affects the information included in this report about the Company's exploration results.
Qualified Persons -- NI 43-101
The information pertaining to the Mineral Resource Estimates included in this Report has been reviewed and approved by Ms. Elizabeth Haren (FAUSIMM $(CP)$ & MAIG) of Haren Consulting Pty Ltd. All other scientific and technical information in this Report has been reviewed and approved by Mr Christian Easterday, MAIG, Hot Chili's Managing Director and Chief Executive Officer. Each of Ms. Haren and Mr. Easterday are a qualified person within the meaning of NI 43-101.
Competent Person's Statement - JORC
The information in this Report that relates to Mineral Resources for Cortadera, Productora (including Alice) and San Antonio which constitute the combined Costa Fuego Project is based on information compiled by Ms Elizabeth Haren, a Competent Person who is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Ms Haren is a full-time employee of Haren Consulting Pty Ltd and an independent consultant to Hot Chili. Ms Haren has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Ms Haren consents to the inclusion in the Report of the matters based on her information in the form and context in which it appears.
The information in this announcement that relates to Exploration Results for the Cortadera projects is based upon information compiled by Mr Christian Easterday, the Managing Director and a full-time employee of Hot Chili Limited, whom is a Member of the Australasian Institute of Geoscientists $(AIG)$. Mr Easterday has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Easterday consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
Production targets and forecast financial information contained in PEA
The information in this report relating to any production targets and forecast financial information derived from the production targets comprised in the statements in this report about the PEA for the Costa Fuego Copper-Gold Project was previously reported in the Company's announcement 'Hot Chili Announces PEA for Costa Fuego' (the "Technical Report") released to ASX on 28 June 2023 and is available to view on the Company's website at www.hotchili.net.au/investors/asx-announcements/.
For readers to fully understand the information in this Half Year Report, they should read the Technical Report (available on www.SEDAR.com or at www.hotchili.net.au ) in its entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this Half Year Report that qualifies the technical information contained in the Technical Report. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this Half Year Report is subject to the assumptions and qualifications contained in the Report.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement, and that all material assumptions and technical parameters underpinning the production targets and forecast financial information derived from the production targets contained in the original market announcement continue to apply and have not materially changed.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Report.
Cautionary Note for U.S. Investors Concerning Mineral Resources
NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Technical disclosure contained in this report has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission ("SEC") and resource information contained in this report may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.
All amounts in this report are in U.S. dollars unless otherwise noted.
Forward Looking Statements
This report contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this report should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "believe", "could", "estimate", "expect", "may", "plan", "potential", "project", "should", "toward", "will", "would" and similar expressions are intended to identify forward-looking statements.
The forward-looking statements within this Report are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this report. In addition, this report may contain forward-looking statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.
In this Report, forward-looking statements relate, among other things, to: projections for and success of the Company and its projects; the ability of the Company to expand mineral resources beyond current mineral resource estimates; the results of current and planned geophysical, soil sampling and other exploration programs, including MIMDAS and Mag; the results and impacts of current and planned drilling to extend mineral resources and identify new deposits; the Company's ability to convert mineral resources to mineral reserves; the timing and outcomes of current and future planned economic studies including the planned PFS and DFS; the potential to develop a water business in the Huasco valley and the future economics thereof; the timing and results of the Water Supply Business Case Study; whether or not a second maritime water extraction permit will be granted; whether or not water offtake agreements and/or infrastructure partner agreements will be entered into and, if so, on what terms; the timing and outcomes of regulatory processes required to obtain permits for the development and operation of the Costa Fuego Project, including the EIA; whether or not the Company will make a development decision and the timing thereof; and estimates of planned exploration costs and the results thereof.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this Report, including, but not limited to, the following material factors: operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this report and elsewhere in the Company's public disclosure record.
Although the forward-looking statements contained in this Report are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this Report, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward-looking information provided in this Report to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The forward-looking statements contained in this report are expressly qualified by the foregoing cautionary statements and are made as of the date of this Report. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this Report or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire report and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment.
Director's Report
The Directors of Hot Chili Limited present their report on the consolidated entity consisting of Hot Chili Limited ("the Company" or "Hot Chili") and the entities it controlled ("consolidated entity" or "the Group") at the end of, or during, the half-year ended 31 December 2024.
Directors
The following persons held office as directors of Hot Chili Limited at the date of this report or were directors at any time during the half-year ended 31 December 2024, unless otherwise stated:
Dr Nicole Adshead-Bell (Independent Non-Executive Chairman) (Resigned 11 March 2025)
Christian Easterday (Managing Director)
Roberto de Andraca Adriasola (Non-Executive Director)
Mark Jamieson (Non-Executive Director)
Stephen Quin (Independent Non-Executive Director) (Resigned 11 March 2025)
Principal Activities
The principal continuing activity of the consolidated entity is mineral exploration.
Significant Changes in the State of Affairs
During the half year under review, significant changes in the state of affairs of the consolidated entity were as follows:
In November 2024, the Company executed an Option Agreement to acquire a 100% interest in the historical La Verde Copper Mine (La Verde), located 30 km south of the Company's low-altitude, Costa Fuego copper-gold project in Chile.
In December 2024, the Company announced significant copper-gold, porphyry-style mineralisation at La Verde, with 202m grading 0.6% copper, 0.3g/t gold from 70m depth.
Results of Operations for the Half-Year Ended 31 December 2024
The results of the consolidated entity from continuing operations after providing for income tax and non-controlling interest for the half-year ended 31 December 2024 was a loss of $6,509,483 (half-year ended 31 December 2023: loss of $4,131,534).
Dividends
No dividends were paid or declared since the end of the previous year ending 30 June 2024. The Directors do not recommend the payment of a dividend.
Rounding Off of Amounts
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, dated 24 March 2016, issued by the Australian Securities and Investments Commission. Therefore, the amounts contained in the Directors' Report and in the financial report have been rounded to the nearest dollar in accordance with that Corporations Instrument, unless otherwise stated.
Review of Operations and Qualifying Statements
Refer to the Review of Operations report in Section 1 and associated Qualifying Statements in Section 2.
Matters Subsequent to Reporting Date 31 December 2024
On 6 January 2025, the Company issued 352,913 Service Rights and 366,094 Performance Rights under an employee incentive scheme. The Service and Performance Rights have been issued effective from the individuals start dates with the Company.
On 7 January 2025, announced that 1,850,001 options had expired without exercise or conversion.
On 4 February 2025, the Company announced that 1,259,789 options had expired without exercise or conversion.
On 11 February 2025, Hot Chili reported a second round of strong assay results from its La Verde copper-gold discovery, located approximately 30km south of the Company's Costa Fuego Copper-Gold Project planned central processing hub at low elevation in the coastal range of the Atacama region, Chile. The Company has now completed 19 RC drill holes (5,700 m) at La Verde, with assay results from 12 holes reported so far confirming a major copper-gold porphyry discovery in Chile's coastal range.
On 11 March 2025 Dr Nicole Adshead-Bell, Non-Executive Chairman and Mr Stephen Quin, Non-Executive Director tendered their resignations, effectively immediately.
Auditors' Independence Declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' Report.
This report is made in accordance with a resolution of the Board of Directors made pursuant to section 306(3)(a) of the Corporations Act 2001.
Signed on behalf of the Board of Directors by:
Christian Easterday
Managing Director
Dated this 13(th) day of March 2025
Perth, Western Australia
For the Auditor's Independence Declaration and the Indpendent Auditor's Review Report, please refer to SEDAR+.
Director's Declaration
In the opinion of the Directors:
a) the attached financial statements and notes thereto comply with the Corporations Act 2001, the accounting standards (including Australian Accounting Standard AASB 134 Interim Financial Reporting), the Corporations Regulations 2001 and other mandatory professional reporting requirements;
b) the attached financial statements and notes thereto give a true and fair view of the consolidated entity's financial position as at 31 December 2024 and of its performance for the half-year ended on that date; and
c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section 303(5)(a) of the Corporations Act 2001.
Signed on behalf of the Board of Directors by:
Christian Easterday
Managing Director
Dated this 13(th) day of March 2025
Perth, Western Australia
Statement of Profit or Loss and Other Comprehensive Income
For the Half-Year Ended 31 December 2024
Consolidated Entity
Half-Year Ended
Dec 2024 Dec 2023
Note $ $
-------------------------------------------------------------------------------------------- ----------- -----------
Interest income 350,031 173,425
----------- -----------
Total Income 350,031 173,425
----------- -----------
Depreciation (98,050) (65,336)
Corporate fees (254,732) (221,257)
Legal and professional (654,930) (290,490)
Employee benefits expense (1,065,067) (961,504)
Administration expenses (680,568) (454,355)
Accounting fees (84,378) (17,033)
Marketing expenses (595,620) (607,061)
Travel costs - (100,003)
Tenement write
off 3 (2,909,169) -
Foreign exchange gain 98,946 207,735
Share-based payments expense (754,210) (1,860,807)
Direct costs expensed (1,350) -
Finance costs (29,598) (19,961)
Total Expenses (7,028,726) (4,390,072)
----------- -----------
Loss before income tax (6,678,695) (4,216,647)
Income tax expense - -
----------- -----------
Loss After Income Tax (6,678,695) (4,216,647)
Other comprehensive income - -
----------- -----------
Total Comprehensive Loss (6,678,695) (4,216,647)
----------- -----------
Loss Attributable To:
Non-controlling interest (169,212) (85,113)
Owners of Hot Chili Limited (6,509,483) (4,131,534)
----------- -----------
(6,678,695) (4,216,647)
----------- -----------
Basic and diluted loss per share (cents) attributable
to the owners of Hot Chili Limited (5.27) (3.46)
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
Statement of Financial Position
As at 31 December 2024
Consolidated Entity
Dec 2024 June 2024
Note $ $
--------------------------------------- ------ ------------ ------------
Current Assets
Cash and cash equivalents 19,032,095 33,741,518
Other current assets 342,885 278,530
------------ ------------
Total Current Assets 19,374,980 34,020,048
------------ ------------
Non-Current Assets
Plant and equipment 198,266 162,654
Exploration and evaluation expenditure 3 224,663,494 215,831,609
Right-of-use assets 4 418,562 508,689
Other non-current assets 400,761 359,309
------------ ------------
Total Non-Current Assets 225,681,083 216,862,261
------------ ------------
Total Assets 245,056,063 250,882,309
------------ ------------
Current Liabilities
Trade and other payables 2,803,139 2,608,414
Provisions 237,209 267,526
Lease liabilities 5 181,779 162,588
------------ ------------
Total Current Liabilities 3,222,127 3,038,528
Non-Current Liabilities
Provisions 26,262 24,591
Lease liabilities 5 306,847 392,014
------------ ------------
Total Non-Current Liabilities 333,109 416,605
Total Liabilities 3,555,236 3,455,133
------------ ------------
Net Assets 241,500,827 247,427,176
------------ ------------
Equity
Contributed equity 8 297,713,521 297,651,726
Share-based payments reserve 7,136,250 6,445,699
Foreign currency translation reserve 1,222 1,222
Accumulated losses (82,829,379) (76,319,896)
------------ ------------
Capital and Reserves Attributable to
Owners of Hot Chili Limited 222,021,614 227,778,751
Non-controlling interest 19,479,213 19,648,425
------------ ------------
Total Equity 241,500,827 247,427,176
------------ ------------
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
Statement of Changes in Equity
For the Half-Year Ended 31 December 2024
Foreign
Share-Based Currency Non-Controlling
Contributed Payments Translation Accumulated Interest Total
Consolidated Equity Reserve Reserve Losses ("NCI") Equity
Entity $ $ $ $ $ $
-------------- ----------- ----------- ----------- ------------ --------------- -----------
Half-Year
Ended Dec
2024
Balance at 1
July 2024 297,651,726 6,445,699 1,222 (76,319,896) 19,648,425 247,427,176
Loss for the
period - - - (6,509,483) (169,212) (6,678,695)
----------- ----------- ----------- ------------ --------------- -----------
Total
Comprehensive
Loss - - - (6,509,483) (169,212) (6,678,695)
----------- ----------- ----------- ------------ --------------- -----------
Share issue
costs (1,864) - - - - (1,864)
Rights
exercised 63,659 (63,659) - - - -
Share-based
payments - 754,210 - - - 754,210
Balance at
31 Dec 2024 297,713,521 7,136,250 1,222 (82,829,379) 19,479,213 241,500,827
=========== =========== =========== ============ =============== ===========
Half-Year
Ended Dec
2023
Balance at 1
July 2023 269,189,573 5,230,152 1,222 (71,081,853) 19,309,663 222,648,757
Loss for the
period - - - (4,131,534) (85,113) (4,216,647)
----------- ----------- ----------- ------------ --------------- -----------
Total
Comprehensive
Loss - - - (4,131,534) (85,113) (4,216,647)
----------- ----------- ----------- ------------ --------------- -----------
Performance
rights
lapsed - (2,331,333) - 2,331,333 - -
Share-based
payments - 1,860,807 - - - 1,860,807
Balance at
31 Dec 2023 269,189,573 4,759,626 1,222 (72,882,054) 19,224,550 220,292,917
=========== =========== =========== ============ =============== ===========
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Statement of Cash Flows
For the Half-Year Ended 31 December 2024
Consolidated Entity
Half-Year Ended
Dec 2024 Dec 2023
Note $ $
------------------------------------------- ------ ------------ -----------
Cash Flows from Operating Activities
Payments to suppliers and employees (3,522,097) (2,802,824)
Interest received 355,726 118,364
Interest paid (6) (943)
Net Cash Used in Operating Activities (3,166,377) (2,685,403)
------------ -----------
Cash Flows from Investing Activities
Payments for plant and equipment (58,977) (4,484)
Payments for tenements 3 (2,471,940) (1,353,279)
Payments for exploration and evaluation (8,856,940) (7,017,096)
Proceeds on sale of NSR, net of transaction
costs - 21,286,690
Net Cash (Used in)/Received from Investing
Activities (11,387,857) 12,911,831
------------ -----------
Cash Flows from Financing Activities
Share issue costs (117,115) -
Repayment of lease liabilities (95,568) (77,361)
------------ -----------
Net Cash Used in Financing Activities (212,683) (77,361)
------------ -----------
Net (decrease)/increase in cash held (14,766,917) 10,149,067
Cash and cash equivalents at the beginning
of the period 33,741,518 2,948,964
Foreign exchange differences on cash 57,494 222,855
------------ -----------
Cash and Cash Equivalents at the End of the
Period 19,032,095 13,320,886
------------ -----------
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
Notes to the Financial Statements
For the Half-Year Ended 31 December 2024
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES
Statement of Compliance
The half-year financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting.
The half-year financial report does not include full disclosures of the type normally included in an annual financial report. Accordingly, it is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2024 and any public announcements made by Hot Chili Limited and its controlled entities during the half-year in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Basis of Preparation
The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements, unless otherwise stated. The accounting policies are consistent with Australian Accounting Standards and with IFRS Standards.
New or Amended Accounting Standards and Interpretations Adopted
The consolidated entity has adopted all new or amended accounting standards, interpretations and other accounting pronouncements issued by the Australian Accounting Standards Board ("AASB") that are effective for reporting periods beginning on or after 1 January 2025 and therefore mandatory for the current reporting period.
Any new or amended accounting standards, interpretations and other accounting pronouncements that are not yet mandatory have not been early adopted.
2. OPERATING SEGMENTS
The Company's operations are in one reportable business segment, being the exploration for Copper. The Company operates in one geographical segment, being Chile.
The operating segment information is the same information as provided throughout the consolidated financial statements and therefore not duplicated. The information reported to the CODM is on at least a monthly basis.
3. EXPLORATION AND EVALUATION EXPENDITURE
Consolidated Entity
Half-Year Year Ended
Ended 30 June
31 Dec 2024 2024
$ $
-------------------------------------------------- ------------ ------------
Carrying amount at the beginning of the period 215,831,609 220,436,849
Tenement write off(5) (2,909,169) -
Partial disposal of underlying mineral resource
and property rights, net of transaction costs (1) - (21,286,690)
Consideration given for mineral exploration
acquisition(4) 2,471,940 2,625,969
Capitalised mineral exploration and evaluation (2) 9,269,114 14,055,481
------------ ------------
Carrying Amount at the End of the Period (3) 224,663,494 215,831,609
------------ ------------
(1) In July 2023, the Company closed a US$15 million investment by Osisko
Gold Royalties Limited, pursuant to which Hot Chili received proceeds of
US$15 million in exchange for the sale of a 1% NSR royalty on copper and
a 3% NSR royalty on gold across the Company's Costa Fuego Copper-Gold
Project.
(2) Capitalised mineral exploration and evaluation is net of reimbursements
of VAT recovered following approval for VAT refunds from the Chilean Tax
Authorities.
(3) Management have determined that the capitalised expenditure relating to
the projects in Chile are still in the exploration phase and are to be
classified as exploration and evaluation expenditure. In accordance with
AASB 6 Exploration for and Evaluation of Mineral Resources, management
have assessed whether there are any indicators of impairment on the
capitalised expenditure as at balance date. In making this assessment
management have considered whether sufficient data exists to conclude
that the exploration and evaluation assets are unlikely to be recovered
in full from successful development or sale. Based on this assessment,
management are satisfied that there are no impairment indicators as at
balance date.
(4) Payments required under option and purchase agreements to secure
tenements together with associated taxes & registration costs.
The future realisation of these non-current assets is dependent on
further exploration and funding necessary to commercialise the resources
or realisation through sale.
(5) Marsellesa and Antofagasta Minerals S.A. (AMSA) Option agreements have
been terminated due to unsuccessful exploration assessments by the
Company. These terminations are not considered material to the
exploration program.
4. RIGHT-OF-USE ASSETS
Consolidated Entity
Dec 2024 June 2024
$ $
-------------------------------------- ------------ ----------
Right-of-use assets at cost 831,495 831,495
Less: Accumulated amortisation (412,933) (322,806)
418,562 508,689
------------ ----------
Half-Year Year Ended
Ended 30 June
31 Dec 2024 2024
Reconciliation of Right-of-Use Assets $ $
-------------------------------------- ------------ ----------
Opening balance 508,689 277,591
Additions(1) - 356,835
Amortisation (90,127) (125,737)
Closing balance(2) 418,562 508,689
------------ ----------
1. From the previous year up until 1 June 2024, the Chilean entities leased
their previous office premises at Avenida Isidora Goyenechea, Las Condes,
Santiago under an operating lease. The commitments for minimum lease
payments in relation to the previous Chilean office was previously
disclosed in Note 17(c) of the Company's annual report for the year ended
30 June 2023. Effective on 1 June 2024, the Chilean entities entered into
a new lease agreement for their new Chilean office premises at Lan Condes,
Santiago, Republic of Chile. This lease has a fixed term of 3 years, with
the option to renew for a further 3 years. The lease is denominated in
"Unidad de Fomento", or "Development Units", which is a Chilean
inflation-indexed unit of account.
2. During the year, the Company continued its leases for its premises at 768
Canning Highway, Applecross, Western Australia. The lease for the ground
floor terminates on 28 February 2025 and the lease for the first floor
terminates on 28 February 2026.
5. LEASE LIABILITIES
Consolidated Entity
Dec 2024 June 2024
$ $
------------------------------------ ------------ ----------
Current 181,779 162,588
Non-current 306,847 392,014
488,626 554,602
------------ ----------
Half-Year Year Ended
Ended 30 June
31 Dec 2024 2024
Reconciliation of Lease Liabilities $ $
------------------------------------ ------------ ----------
Opening balance 554,602 333,608
Additions - 356,835
Repayments (110,692) (162,742)
Interest 29,592 37,435
Foreign exchange differences 15,124 (10,534)
Closing balance 488,626 554,602
------------ ----------
6. COMMITMENTS FOR EXPENDITURE
(a) Exploration Commitments
In order to maintain current rights of tenure to exploration and mining tenements, the consolidated entity has the following discretionary exploration expenditure requirements up until the expiry of leases. These obligations are not provided for in the financial statements and are payable as follows:
Consolidated Entity
31 Dec 2024 30 Jun 2024
$ $
-------------------------------------------------- ----------- -----------
Within one year 402,123 377,415
Later than one year but not later than five years 1,608,493 1,509,662
More than five years 4,825,479 4,906,401
6,836,095 6,793,478
----------- -----------
(b) Option Payment Commitments
The mining rights (which vary between 90% to 100%) of the various projects undertaken by Hot Chili will be transferred upon satisfaction of the option payments committed as at 31 December 2024, as tabled below:
Consolidated Entity
31 Dec 2024 30 Jun 2024
$ $
-------------------------------------------------- ----------- -----------
Within one year 3,506,514 4,378,019
Later than one year but not later than five years 32,765,000 22,388,285
More than five years - -
36,271,514 26,766,304
----------- -----------
7. CONTINGENT LIABILITIES
a) VAT
As at 31 December 2024, Hot Chili Limited had accumulated:
-- VAT refund payments of $15,434,266 (30 June 2024: $14,939,275) with
respect to VAT recovered as at 31 December 2024 by Sociedad Minera El
Águila SpA (refer to the table below); and
-- VAT refund payments of $10,157,243 (30 June 2024: $9,731,571) with
respect to VAT recovered as at 31 December 2024 by Sociedad Minera
Frontera SpA (refer to the table below).
Consolidated Entity
Dec 2024 June 2024
$ $
---------------------------------------------------- ---------- ----------
VAT recovered by Sociedad Minera El Águila SpA
(CLP 9,561,515; 30 June 2024: CLP 9,344,976,756 ) 15,434,266 14,939,275
VAT recovered by Sociedad Minera Frontera SpA
(CLP 6,292,404; 30 June 2024: CLP 6,087,397,302) 10,157,243 9,731,571
Total VAT Recovered by Chilean Subsidiaries
(CLP 15,853,919; 30 June 2024: CLP 14,100,115,924) 25,591,509 24,670,846
---------- ----------
Under the initial terms of the VAT refund payment, the consolidated entity initially had until the 31 December 2019 to commercialise production from Productora and meet certain export targets. Hot Chili also had the right to extend this term. The Company exercised its right to extend the date of commercial production from Productora with the Chilean Tax Authority. An extension to the benefit was extended to 30 June 2022 and a further extension until 30 June 2026 was also granted. An agreement with Sociedad Minera Fronters SpA provides an extension to 31 December 2026 for exports related to the Cortadera deposit.
In the event that the term is not extended further and the Company does not meet certain export targets, the Company will be required to re-pay the VAT refund payments to the Chilean Tax Authority subject to certain terms and conditions. However, if Hot Chili achieves the export targets within that timeframe or its renewal, if required, any VAT refund payments will not be required to be repaid.
b) Future Royalty Payments
In July 2023, the Company closed an Investment Agreement with Osisko Gold Royalties Ltd ("Osisko"). Under the terms of the Investment Agreement Osisko purchased a net smelter return royalty comprising 1% of payable copper production and 3% of gold payable production. Hot Chili retains a buyback right if a change of control event occurs prior to the 4th anniversary of closing under the terms and conditions of the announcement dated 28 June 2023.
8. CONTRIBUTED EQUITY
Consolidated Entity
31 Dec 2024 30 June 2024
a) Share Capital No. Shares $ No. Shares $
-------------------------- ----------- ----------- ----------- -----------
Ordinary shares -- fully
paid 151,420,450 297,713,521 151,345,206 297,651,726
----------- ----------- ----------- -----------
b) Movement in Ordinary Share Capital
Balance at the beginning
of the period 151,345,206 297,651,726 119,445,206 269,189,573
Shares issued under
Private Placement to
institutional &
professional investors - - 24,900,000 24,900,000
Shares issued under Share
Purchase Plan to eligible
shareholders 75,244 63,659 7,000,000 7,000,000
Less: Costs associated
with
issue of share capital - (1,864) - (3,437,847)
----------- ----------- ----------- -----------
Balance at the End of the
Period 151,420,450 297,713,521 151,345,206 297,651,726
----------- ----------- ----------- -----------
c) Unlisted Options Over Ordinary Share Capital
Issued
During
Balance at the Expiry / Balance Exercisable
Issue Expiry 1 July 2024 Period Exercise at 31 Dec at 31 Dec
Date Date No. No. No. 2024 No. 2024 No.
-------- --------- ----------- ------- ----------- --------- -----------
20 Sep 30 Sep
2021 2024 1,850,001 - (1,850,001) - -
4 Sep 28 Jan
2022 2025 1,259,789 - - 1,259,789 1,259,789
25 Jul 25 Jul
2024(1) 2026 1,914,000 - - 1,914,000 1,914,000
5,023,790 - (1,850,001) 3,173,789 3,173,789
----------- ------- ----------- --------- -----------
1 Approved at the General Meeting of Shareholders on 4 July 2024.
The weighted average exercise price of options on issue is $2.07 (30 June 2024: $2.16). The weighted average remaining contractual life of options outstanding at the end of the period was 0.08 years (30 June 2024: 0.38 years)
8. CONTRIBUTED EQUITY (CONT'D)
d) Service Rights
Issued
During
the Exercisable
Last Expiry Balance at Period Lapsed / Balance at 31 Dec
Grant Vesting Date 1 July 2024 (2) Exercise at 31 Dec 2024 (3)
Date Day (1) No. No. No. 2024 No. No.
------ -------- ------- ----------- ------- --------- --------- -----------
10 May 31 Dec 12 May
2023 2023 2028 938,953 - (47,404) 891,549 891,549
10 May 31 Dec 12 May
2023 2024 2028 938,955 - (55,692) 883,263 883,263
10 May 31 Dec 12 May
2023 2025 2028 938,956 - (111,384) 827,572 -
21 Aug 31 Dec 22 Aug
2023 2023 2028 115,006 - (8,333) 106,673 106,673
21 Aug 31 Dec 22 Aug
2023 2024 2028 115,006 - - 115,006 115,006
21 Aug 31 Dec 22 Aug
2023 2025 2028 114,988 - - 114,988 -
1 Jul 31 Dec 6 Jan
2024 2024 2030 - 115,231 - 115,231 115,231
1 Jul 31 Dec 6 Jan
2024 2025 2030 - 237,682 - 237,682 -
3,161,864 352,913 (222,813) 3,291,964 2,111,722
----------- ------- --------- --------- -----------
1 Later expiry dates apply if service rights have vested on or before the
last vesting day.
2 There were 352,913 service rights issued during the period.
3 Denotes service rights exercisable as a result of vesting conditions being
met during the year.
e) Performance Rights
Issued
During
the Exercisable
Last Expiry Balance at Period Lapsed / Balance at 31 Dec
Grant Vesting Date 1 July 2024 (2) Exercise at 31 Dec 2024 (3)
Date Day (1) No. No. No. 2024 No. No.
------ -------- ------- ----------- ------- --------- --------- -----------
10 May 31 Dec 12 May
2023 2023 2028 290,480 - (16,591) 273,889 273,889
10 May 31 Dec 12 May
2023 2024 2028 290,485 - (38,984) 251,501 251,501
10 May 31 Dec 12 May
2023 2025 2028 1,286,433 - (172,646) 1,113,787 -
10 May 10 May 12 May
2023 2026 2028 622,466 - (83,538) 538,928 -
21 Aug 31 Dec 22 Aug
2023 2023 2028 40,244 - (2,916) 37,328 37,328
21 Aug 31 Dec 22 Aug
2023 2024 2028 40,244 - - 40,244 40,244
21 Aug 31 Dec 22 Aug
2023 2025 2028 178,262 - - 178,262 -
21 Aug 21 Aug 22 Aug
2023 2026 2028 86,250 - - 86,250 -
1 Jul 31 Dec 6 Jan
2024 2024 2030 - 40,371 - 40,371 40,371
1 Jul 31 Dec 6 Jan
2024 2025 2030 - 232,531 - 232,531 -
1 Jul 21 Aug 6 Jan
2024 2026 2030 - 93,192 - 93,192 -
2,834,864 366,094 (314,675) 2,886,283 643,333
----------- ------- --------- --------- -----------
1 Later expiry dates apply if performance rights have vested on or before the
last vesting day.
2 There were 366,094 performance rights issued during the period.
3 Denotes performance rights exercisable as a result of vesting conditions
being met during the year.
9. RELATED PARTY TRANSACTIONS
Remuneration, share-based payments and other arrangements of key management personnel are disclosed in the annual financial report for the year ended 30 June 2024. These arrangements with related parties continued to be in place during the period. No further related party arrangements were made, nor were there further related party transactions during the half-year period to 31 December 2024.
10. EVENTS OCCURRING AFTER REPORTING DATE
On 6 January 2025, the Company issued 352,913 Service Rights and 366,094 Performance Rights under an employee incentive scheme. The Service and Performance Rights have been issued effective from the individuals start dates with the Company.
On 7 January 2025, the Company announced that 1,850,001 options had expired without exercise or conversion.
On 4 February 2025, the Company announced that 1,259,789 options had expired without exercise or conversion.
On 11 February 2025, Hot Chili reported a second round of strong assay results from its La Verde copper-gold discovery, located approximately 30km south of the Company's Costa Fuego Copper-Gold Project planned central processing hub at low elevation in the coastal range of the Atacama region, Chile. The Company has now completed 19 RC drill holes (5,700 m) at La Verde, with assay results from 12 holes reported so far confirming a major copper-gold porphyry discovery in Chile's coastal range.
On 11 March 2025 Dr Nicole Adshead-Bell, Non-Executive Chairman and Mr Stephen Quin, Non-Executive Director tendered their resignations, effectively immediately.
The Directors are not aware of any other matters or circumstances that have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the consolidated entity the results of those operations, or the state of affairs of the consolidated entity in future financial periods.
11. DIVIDENDS
No dividends were paid or declared for the period.
This section does not form part of the notes to the financial statements.
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024
Cortadera Project
Area Agreement
License ID HCH % Held HCH % Earning (ha) Details
-------------------------- ------------------ -------------- ---- ---------
MAGDALENITA 1/20 100% Frontera SpA 100
-------------------------- ---------------------------------- ---- ---------
ATACAMITA 1/82 100% Frontera SpA 82
-------------------------- ---------------------------------- ----
AMALIA 942 A 1/6 100% Frontera SpA 53
-------------------------- ---------------------------------- ----
PAULINA 10 B 1/16 100% Frontera SpA 136
-------------------------- ---------------------------------- ----
PAULINA 11 B 1/30 100% Frontera SpA 249
-------------------------- ---------------------------------- ----
PAULINA 12 B 1/30 100% Frontera SpA 294
-------------------------- ---------------------------------- ----
PAULINA 13 B 1/30 100% Frontera SpA 264
-------------------------- ---------------------------------- ----
PAULINA 14 B 1/30 100% Frontera SpA 265
-------------------------- ---------------------------------- ----
PAULINA 15 B 1/30 100% Frontera SpA 200
-------------------------- ---------------------------------- ----
PAULINA 22 A 1/30 100% Frontera SpA 300
-------------------------- ---------------------------------- ----
PAULINA 24 1/24 100% Frontera SpA 183
-------------------------- ---------------------------------- ----
PAULINA 25 A 1/19 100% Frontera SpA 156
-------------------------- ---------------------------------- ----
PAULINA 26 A 1/30 100% Frontera SpA 294
-------------------------- ---------------------------------- ----
PAULINA 27A 1/30 100% Frontera SpA 300
-------------------------- ---------------------------------- ----
CORTADERA 1 1/200 100% Frontera SpA 200
-------------------------- ---------------------------------- ----
CORTADERA 2 1/200 100% Frontera SpA 200
-------------------------- ---------------------------------- ----
CORTADERA 41 100% Frontera SpA 1
-------------------------- ---------------------------------- ----
CORTADERA 42 100% Frontera SpA 1
-------------------------- ---------------------------------- ----
LAS CANAS 16 100% Frontera SpA 1
-------------------------- ---------------------------------- ----
LAS CANAS 1/15 100% Frontera SpA 146
-------------------------- ---------------------------------- ----
CORTADERA 1/40 100% Frontera SpA 374
-------------------------- ---------------------------------- ----
LAS CANAS ESTE 2003 1/30 100% Frontera SpA 300
-------------------------- ---------------------------------- ----
CORROTEO 1 1/260 100% Frontera SpA 260
-------------------------- ---------------------------------- ----
CORROTEO 5 1/261 100% Frontera SpA 261
-------------------------- ---------------------------------- ---- ---------
PURISIMA 100% Frontera SpA 20 NSR 1.5%
-------------------------- ---------------------------------- ---- ---------
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
Productora Project
Agreement
License ID HCH % Held HCH % Earning Area (ha) Details
------------------ ------------- -------------- --------- ----------------
FRAN 1 1/60 80% SMEA SpA 220
------------------ ----------------------------- --------- ----------------
FRAN 2 1/20 80% SMEA SpA 100
------------------ ----------------------------- --------- ----------------
FRAN 3 1/20 80% SMEA SpA 100
------------------ ----------------------------- --------- ----------------
FRAN 4 1/20 80% SMEA SpA 100
------------------ ----------------------------- --------- ----------------
FRAN 5 1/20 80% SMEA SpA 100
------------------ ----------------------------- --------- ----------------
FRAN 6 1/26 80% SMEA SpA 130
------------------ ----------------------------- --------- ----------------
FRAN 7 1/37 80% SMEA SpA 176
------------------ ----------------------------- --------- ----------------
FRAN 8 1/30 80% SMEA SpA 120
------------------ ----------------------------- --------- ----------------
FRAN 12 1/40 80% SMEA SpA 200
------------------ ----------------------------- --------- ----------------
FRAN 13 1/40 80% SMEA SpA 200
------------------ ----------------------------- --------- ----------------
FRAN 14 1/40 80% SMEA SpA 200
------------------ ----------------------------- --------- ----------------
FRAN 15 1/60 80% SMEA SpA 300
------------------ ----------------------------- --------- ----------------
FRAN 18, 1/60 80% SMEA SpA 273
------------------ ----------------------------- --------- ----------------
FRAN 21, 1/46 80% SMEA SpA 226
------------------ ----------------------------- --------- ----------------
ALGA 7 A 1/32 80% SMEA SpA 89
------------------ ----------------------------- --------- ----------------
ALGA VI 5/24 80% SMEA SpA 66
------------------ ----------------------------- --------- ----------------
MONTOSA 1/4 80% SMEA SpA 35 NSR 3%
------------------ ------------- -------------- --------- ----------------
CHICA 80% SMEA SpA 1
------------------ ----------------------------- --------- ----------------
ESPERANZA 1/5 80% SMEA SpA 11
------------------ ----------------------------- --------- ----------------
LEONA 2A 1/4 80% SMEA SpA 10
------------------ ----------------------------- --------- ----------------
CARMEN I, 1/50 80% SMEA SpA 222
------------------ ----------------------------- --------- ----------------
CARMEN II, 1/60 80% SMEA SpA 274
------------------ ----------------------------- --------- ----------------
ZAPA 1 1/10 80% SMEA SpA 100
------------------ ----------------------------- --------- ----------------
ZAPA 3 1/23 80% SMEA SpA 92
------------------ ----------------------------- --------- ----------------
ZAPA 5A 1/16 80% SMEA SpA 80
------------------ ----------------------------- --------- ----------------
ZAPA 7 1/24 80% SMEA SpA 120
------------------ ----------------------------- --------- ----------------
CABRITO-CABRITO
1/9 80% SMEA SpA 50
------------------ ----------------------------- --------- ----------------
CUENCA A 1/51 80% SMEA SpA 255
------------------ ----------------------------- --------- ----------------
CUENCA B 1/28 80% SMEA SpA 139
------------------ ----------------------------- --------- ----------------
CUENCA C 1/51 80% SMEA SpA 255
------------------ ----------------------------- --------- ----------------
CUENCA D 80% SMEA SpA 3
------------------ ----------------------------- --------- ----------------
CUENCA E 80% SMEA SpA 1
------------------ ----------------------------- --------- ----------------
CHOAPA 1/10 80% SMEA SpA 50 ------------------ ----------------------------- --------- ---------------- ELQUI 1/14 80% SMEA SpA 61 ------------------ ----------------------------- --------- ---------------- LIMARÍ 1/15 80% SMEA SpA 66 ------------------ ----------------------------- --------- ---------------- LOA 1/6 80% SMEA SpA 30 ------------------ ----------------------------- --------- ---------------- MAIPO 1/10 80% SMEA SpA 50 ------------------ ----------------------------- --------- ---------------- TOLTÉN 1/14 80% SMEA SpA 70 ------------------ ----------------------------- --------- ----------------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
Productora Project (Cont'd)
Area
License ID HCH % Held HCH % Earning (ha) Agreement Details
------------- ----------- -------------- ---- ----------------------------------------
CACHIYUYITO
1 1/20 80% SMEA SpA 100
------------- --------------------------- ---- ----------------------------------------
CACHIYUYITO
2 1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
CACHIYUYITO
3 1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
PRODUCTORA
1/16 80% SMEA SpA 75
------------- --------------------------- ---- ----------------------------------------
ORO INDIO 1A
1/20 80% SMEA SpA 82
------------- --------------------------- ---- ----------------------------------------
AURO HUASCO
1A 1/8 80% SMEA SpA 35
------------- --------------------------- ---- ----------------------------------------
25-year Lease Agreement
US$250,000 per year (average for the 25
URANIO 1/70 year term); plus 2% NSR all but gold;
0 % 0 % 350 4% NSR gold; 5% NSR non-metallic
------------- ----------- -------------- ---- ----------------------------------------
JULI 9, 1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 10,
1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 11,
1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 12,
1/42 80% SMEA SpA 210
------------- --------------------------- ---- ----------------------------------------
JULI 13,
1/20 80% SMEA SpA 100
------------- --------------------------- ---- ----------------------------------------
JULI 14,
1/50 80% SMEA SpA 250
------------- --------------------------- ---- ----------------------------------------
JULI 15,
1/55 80% SMEA SpA 275
------------- --------------------------- ---- ----------------------------------------
JULI 16 1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 17 1/20 80% SMEA SpA 100
------------- --------------------------- ---- ----------------------------------------
JULI 19 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 20 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 21 1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 22 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 23 1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 24 1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 25 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULI 27,
1/30 80% SMEA SpA 146
------------- --------------------------- ---- ----------------------------------------
JULI 27 B,
1/10 80% SMEA SpA 48
------------- --------------------------- ---- ----------------------------------------
JULI 28,
1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULIETA 5 80% SMEA SpA 200
------------- --------------------------- ---- ----------------------------------------
JULIETA 6 80% SMEA SpA 200
------------- --------------------------- ---- ----------------------------------------
JULIETA 7 80% SMEA SpA 100
------------- --------------------------- ---- ----------------------------------------
JULIETA 8 80% SMEA SpA 100
------------- --------------------------- ---- ----------------------------------------
JULIETA 9 80% SMEA SpA 100
------------- --------------------------- ---- ----------------------------------------
JULIETA 10,
1/60 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULIETA 11 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULIETA 12 80% SMEA SpA 300
------------- --------------------------- ---- ----------------------------------------
JULIETA 13
1/60 80% SMEA SpA 298
------------- --------------------------- ---- ----------------------------------------
JULIETA 14
1/60 80% SMEA SpA 269
------------- --------------------------- ---- ----------------------------------------
JULIETA 15
1/40 80% SMEA SpA 200
------------- --------------------------- ---- ----------------------------------------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
Productora Project (Cont'd)
License ID HCH % Held HCH % Earning Area (ha) Agreement Details
----------------- ------------- -------------- --------- -----------------
JULIETA 16 80% SMEA SpA 200
----------------- ----------------------------- --------- -----------------
JULIETA 17 80% SMEA SpA 200
----------------- ----------------------------- --------- -----------------
JULIETA 18 1/40 80% SMEA SpA 200
----------------- ----------------------------- --------- -----------------
ARENA 1 1/6 80% SMEA SpA 40
----------------- ----------------------------- --------- -----------------
ARENA 2 1/17 80% SMEA SpA 113
----------------- ----------------------------- --------- -----------------
ZAPA 1/6 80% SMEA SpA 6 GSR 1%
----------------- ------------- -------------- --------- -----------------
JULIETA 1/4 80% SMEA SpA 4
----------------- ----------------------------- --------- -----------------
Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili
Limited, 20% owned by CMP (Compañía Minera
del Pacífico)
El Fuego Project
Exploration and
Area Expenditure Commitment-
Licence ID HCH % Held HCH % Earning (ha) Payments
----------- -------------- ------------------ ---- --------------------------
100% HCH Purchase Option
Agreement
USD 300,000 already paid.
US$1,000,000 payable
September 30th 2024
US$1,000,000 payable
September 30th 2025
US$2,000,000 payable by
September 30th 2026 to
exercise the El Fuego
Option. (2 additional
and conditional payments
of USD 2,000,000, each
one, to be paid by
December 31, 2030 under
certain conditions
detailed at
title "Tenement Changes
SANTIAGO During the Quarter" of
21/36 10% Frontera SpA 76 this quarterly report.) ----------- -------------- ------------------ ---- -------------------------- SANTIAGO 37/43 100% Frontera SpA 26 --------------------------- ----------------- ---- -------------------------- SANTIAGO A, 1/26 100% Frontera SpA 244 --------------------------- ----------------- ---- SANTIAGO B, 1/20 100% Frontera SpA 200 --------------------------- ----------------- ---- SANTIAGO C, 1/30 100% Frontera SpA 300 --------------------------- ----------------- ---- SANTIAGO D, 1/30 100% Frontera SpA 300 --------------------------- ----------------- ---- SANTIAGO E, 1/30 100% Frontera SpA 300 --------------------------- ----------------- ---- PRIMA 1 100% Frontera SpA 1 --------------------------- ----------------- ---- PRIMA 2 100% Frontera SpA 2 --------------------------- ----------------- ---- SANTIAGO 15/19 100% Frontera SpA 25 --------------------------- ----------------- ---- SAN ANTONIO 1/5 100% Frontera SpA 25 --------------------------- ----------------- ---- SANTIAGO 1/4 Y 20 100% Frontera SpA 75 --------------------------- ----------------- ---- ROMERO 1/31 100% Frontera SpA 31 --------------------------- ----------------- ---- MERCEDES 1/3 100% Frontera SpA 50 --------------------------- ----------------- ---- KRETA 1/4 100% Frontera SpA 16 --------------------------- ----------------- ---- MARI 1/12 100% Frontera SpA 64 --------------------------- ----------------- ---- PORFIADA VII 1/60 100% Frontera SpA 270 --------------------------- ----------------- ---- PORFIADA VIII 1/60 100% Frontera SpA 300 --------------------------- ----------------- ---- SANTIAGO Z 1/30 100% Frontera SpA 300 --------------------------- ----------------- ---- PORFIADA IX 1/60 100% Frontera SpA 300 --------------------------- ----------------- ---- PORFIADA A 1/33 100% Frontera SpA 160 --------------------------- ----------------- ---- PORFIADA C 1/60 100% Frontera SpA 300 --------------------------- ----------------- ---- PORFIADA E 1/20 100% Frontera SpA 100 --------------------------- ----------------- ---- PORFIADA F 1/50 100% Frontera SpA 240 --------------------------- ----------------- ---- SAN JUAN SUR 1/5 100% Frontera SpA 10 --------------------------- ----------------- ---- SAN JUAN SUR 6/23 100% Frontera SpA 90 --------------------------- ----------------- ---- PORFIADA G 100% Frontera SpA 200 ----------- ---------------------------------- ---- -------------------------- CORTADERA 1 100% Frontera SpA 200 ----------- ---------------------------------- ---- --------------------------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
El Fuego Project (Cont'd)
Exploration
and
Expenditure
Commitment-
Licence ID HCH % Held HCH % Earning Area (ha) Payments
--------------- ------------------ -------------- --------- --------------
CORTADERA 2 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CORTADERA 3 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CORTADERA 4 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CORTADERA 5 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CORTADERA 6
1/60 100% Frontera SpA 265
--------------- ---------------------------------- --------- --------------
CORTADERA 7
1/20 100% Frontera SpA 93
--------------- ---------------------------------- --------- --------------
SAN ANTONIO 1 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
SAN ANTONIO 2 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
SAN ANTONIO 3 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
SAN ANTONIO 4 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
SAN ANTONIO 5 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
DORO 1 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
DORO 2 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
DORO 3 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
PORFIADA I 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
PORFIADA II 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
PORFIADA III 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
PORFIADA IV 100% Frontera SpA 300
--------------- ---------------------------------- ---------
PORFIADA V 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
PORFIADA X 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
PORFIADA VI 100% Frontera SpA 100
--------------- ---------------------------------- --------- --------------
PORFIADA B 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
PORFIADA D 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 1 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CHILIS 3 100% Frontera SpA 100
--------------- ---------------------------------- --------- --------------
CHILIS 4 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CHILIS 5 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CHILIS 6 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CHILIS 7 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CHILIS 8 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CHILIS 9 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 10 1/38 100% Frontera SpA 190
--------------- ---------------------------------- --------- --------------
CHILIS 11 100% Frontera SpA 200
--------------- ---------------------------------- --------- --------------
CHILIS 12 1/60 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 13 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 14 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 15 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 16 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 17 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
CHILIS 18 100% Frontera SpA 300
--------------- ---------------------------------- --------- --------------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
El Fuego Project (Cont'd)
Exploration
and
Expenditure
Area Commitment-
Licence ID HCH % Held HCH % Earning (ha) Payments
----------------------- ------------------ -------------- ---- -----------
SOLAR 1 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 2 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 3 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 4 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 5 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 6 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 7 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 8 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 9 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLAR 10 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLEDAD 1 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLEDAD 2 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLEDAD 3 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
SOLEDAD 4 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
CF 1 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
CF 2 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
CF 3 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
CF 4 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
CF 5 100% Frontera SpA 200
----------------------- ---------------------------------- ---- -----------
CHAPULIN COLORADO 1/3 100% Frontera SpA 3
----------------------- ---------------------------------- ---- -----------
PEGGY SUE 1/10 100% Frontera SpA 100
----------------------- ---------------------------------- ---- -----------
DONA FELIPA 1/10 100% Frontera SpA 50
----------------------- ---------------------------------- ---- -----------
ELEANOR RIGBY 1/10 100% Frontera SpA 100
----------------------- ---------------------------------- ---- -----------
CF 6 100% Frontera SpA 200
----------------------- ---------------------------------- ---- -----------
CF 7 100% Frontera SpA 100
----------------------- ---------------------------------- ---- -----------
CF 8 100% Frontera SpA 200
----------------------- ---------------------------------- ---- -----------
CF 9 100% Frontera SpA 100
----------------------- ---------------------------------- ---- -----------
MARI 1 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
MARI 6 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
MARI 8 100% Frontera SpA 300
----------------------- ---------------------------------- ---- -----------
FALLA MAIPO 2 1/10 100% Frontera SpA 99
----------------------- ---------------------------------- ---- -----------
FALLA MAIPO 3 1/8 100% Frontera SpA 72
----------------------- ---------------------------------- ---- -----------
FALLA MAIPO 4 1/26 100% Frontera SpA 26
----------------------- ---------------------------------- ---- -----------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
El Fuego Project (Cont'd)
Exploration and
Area Expenditure Commitment-
Licence ID HCH % Held HCH % Earning (ha) Payments
------------ -------------- ------------------ ---- -------------------------
100% HCH Purchase Option
Agreement USD 100,000
already paid US$200,000
payable by November 14th
2025 US$3,700,000
payable by November
14(th) 2027 NSR 1% for
underground mining and
CORDILLERA Option 1,5% for open-pit
1/5 Cordillera 100% Frontera SpA 20 mining
------------ -------------- ------------------ ---- -------------------------
QUEBRADA 1/10 100% Frontera SpA 28
---------------------------- ----------------- ---- -------------------------
ALBORADA III 1/35 100% Frontera SpA 162
---------------------------- ----------------- ----
ALBORADA IV 1/20 100% Frontera SpA 54
---------------------------- ----------------- ----
ALBORADA VII 1/25 100% Frontera SpA 95
---------------------------- ----------------- ----
CAT IX 1/30 100% Frontera SpA 150
---------------------------- ----------------- ----
CATITA IX 1/20 100% Frontera SpA 100
---------------------------- ----------------- ----
CATITA XII 1/13 100% Frontera SpA 61
---------------------------- ----------------- ----
MINA HERREROS III 1/6 100% Frontera SpA 18
---------------------------- ----------------- ----
MINA HERREROS IV 1/10 100% Frontera SpA 23
---------------------------- ----------------- ----
HERREROS 1/14 100% Frontera SpA 28
---------------------------- ----------------- ----
VETA 1/17 100% Frontera SpA 17
---------------------------- ----------------- ----
PORSIACA 1/20 100% Frontera SpA 20
---------------------------- ----------------- ---- -------------------------
100% HCH Purchase Option
Agreement US$100,000 paid
at signature (already
satisfied) US$100,000
payable by November
14(th) 2024 (pending a
registration issue and
subject to company
decision to continue the
option) US$150,000
payable by November
14(th) 2025
MARSELLESA Option US$1,000,000 by November
1/5 Marsellesa 100% Frontera SpA 50 14, 2027 NSR 1%
------------ -------------- ------------------ ---- -------------------------
Option may be exercised,
alternatively, within 12,
18 or 30 months of the
date of grant at the
discretion of the Hot
Chile -- If the Option
is exercised within 12
months the price is
US$2.500.000: a)
US$100,000 already
satisfied and b) US$
2.400.000 within 12
months from the date of
grant of the Option.
-- If the Option is
exercised within 18 or 30
months the price is
US$2.700.000 or
US$3.300.000, depending
on the date the Option is
exercised, as indicated
below: a) US$100,000
already satisfied; b)
US$200,000 within 12
months from the grant of
the Option; and c) If the
Option is exercised, the
consideration payable to
Bastion to purchase the
Cometa concessions is
US$2,400,000 if the
Option is exercised by
Hot Chili within 18
months from the date of
grant of the Option
or.US$3,000,000 if the
Option is exercised by
Hot Chili within 30
months from the date of
grant of the Option. Hot
Chili may, subject to
applicable regulatory
approvals, including the
approval of the TSX
Venture Exchange
("TSXV"), elect to
satisfy the purchase
consideration in cash
(100%), or in cash (50%)
and ordinary shares of
Hot Chili (50%) issued at
a price per share equal
to the greater of (i) the
15-day VWAP at the date
of exercise of the
Option, and (ii) the
COMETA 1 minimum price permitted
1/60 Option Cometa 100% Frontera SpA 300 by the TSXV.
------------ -------------- ------------------ ---- -------------------------
COMETA 2 1/60 100% Frontera SpA 300
---------------------------- ----------------- ---- -------------------------
COMETA 3 1/60 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA NORTE 1 B 1/40 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA NORTE 2 B 1/40 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA ESTE 1B 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA ESTE 2B 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA ESTE 3B 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA ESTE 4B 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA 4B 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA SUR UNO D 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA SUR DOS D 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA 4A 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA 3D 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA IV D 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA V D 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA VI D 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA NORTE 1 D 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA NORTE 2 D 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA NORTE 3 D 100% Frontera SpA 300
---------------------------- ----------------- ----
COMETA NORTE 4 D 100% Frontera SpA 200
---------------------------- ----------------- ----
COMETA NORTE 5 D 100% Frontera SpA 100
---------------------------- ----------------- ----
COMETA OESTE I D 100% Frontera SpA 200
---------------------------- ----------------- ---- -------------------------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
El Fuego Project (Cont'd)
Exploration and
Expenditure
Commitment-
Licence ID HCH % Held HCH % Earning Area (ha) Payments
------------- -------------- -------------- --------- --------------------
100% Frontera
COMETA OESTE II D SpA 200
----------------------------- ------------- --------- --------------------
100% HCH Purchase
Option Agreement
US$120,000 (already
satisfied)
US$100,000 payable
by April 19th 2025
US$100,000 payable
by April 19th 2026
US$200,000 payable
by April 19th 2027
US$3.480,000 payable
ANTONIO 1 100% Frontera by April 19th 2028
1/56 Option Domeyko SpA 280 NSR 1%
------------- -------------- -------------- --------- --------------------
100% Frontera
ANTONIO 1/40 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
ANTONIO 10 1/21 SpA 63
----------------------------- ------------- --------- --------------------
100% Frontera
ANTONIO 19 1/30 SpA 128
----------------------------- ------------- --------- --------------------
100% Frontera
ANTONIO 21 1/20 SpA 60
----------------------------- ------------- --------- --------------------
100% Frontera
ANTONIO 5 1/40 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
ANTONIO 9 1/40 SpA 193
----------------------------- ------------- --------- --------------------
100% Frontera
EMILIO 1 1/8 SpA 38
----------------------------- ------------- --------- --------------------
100% Frontera
EMILIO 3 1/9 SpA 45
----------------------------- ------------- --------- --------------------
100% Frontera
INES 1/40 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
LORENA 1/2 SpA 2
----------------------------- ------------- --------- --------------------
100% Frontera
MERCEDITA 1/7 SpA 22
----------------------------- ------------- --------- --------------------
100% Frontera
PRIMO 1 1/6 SpA 36
----------------------------- ------------- --------- --------------------
100% Frontera
SANTIAGUITO 5 1/24 SpA 114
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 1 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 2 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 3 SpA 300
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 4 SpA 300
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 5 SpA 100
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 6 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 7 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
CAZURRO 8 SpA 200
----------------------------- ------------- --------- --------------------
100% Frontera
CERRO MOLY 1 SpA 300
----------------------------- ------------- --------- --------------------
100% Frontera
CERRO MOLY 2 SpA 300
----------------------------- ------------- --------- --------------------
100% Frontera
CERRO MOLY 3 SpA 300
----------------------------- ------------- --------- --------------------
100% Frontera
CERRO MOLY 4 SpA 300
----------------------------- ------------- --------- --------------------
CF SUR 1 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 2 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 3 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 4 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 5 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 6 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
El Fuego Project (Cont'd)
Exploration and
Expenditure
Commitment-
Licence ID HCH % Held HCH % Earning Area (ha) Payments
------------- -------------- -------------- --------- --------------------
CF SUR 7 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 8 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 9 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 10 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 11 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 12 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 13 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 14 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 15 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 16 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 17 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 18 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 19 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 20 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 21 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 22 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 23 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 24 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 25 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 26 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 27 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 28 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 29 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 30 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF SUR 31 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 32 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 33 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 34 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF SUR 35 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
CF 10 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF 11 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF 12 100% Frontera SpA 100
------------- ------------------------------ --------- --------------------
CF 13 100% Frontera SpA 200
------------- ------------------------------ --------- --------------------
CF 14 100% Frontera SpA 300
------------- ------------------------------ --------- --------------------
100% HCH Purchase
Option Agreement
US$320,000 (already
satisfied)
US$680,000 payable
by October 25th 2025
US$1000,000 payable
by October 25th 2026
US$6.890,000 payable
DOMINOCEROS 100% Frontera by October 25th
1/20 SpA 100 2027
------------- -------------- -------------- --------- --------------------
ALCENIA 1/10 100% SMEA SpA 50
------------- ------------------------------ --------- --------------------
ALGA VI 4 100% SMEA SpA 2
------------- ------------------------------ --------- --------------------
Table 3: Current Tenement (Patente) Holdings in Chile as at 31 Dec 2024 (Cont'd)
El Fuego Project (Cont'd)
Exploration and Expenditure
Licence ID HCH % Held HCH % Earning Area (ha) Commitment- Payments
---------- -------------- -------------- --------- ----------------------------
CRISTINA
1/40 100% SMEA SpA 40
---------- ------------------------------ --------- ----------------------------
DIABLITO
1/5 100% SMEA SpA 25
---------- ------------------------------ --------- ----------------------------
MINORI 1 100% SMEA SpA 300
---------- ------------------------------ --------- ----------------------------
MINORI 2 100% SMEA SpA 300
---------- ------------------------------ --------- ----------------------------
MINORI 3 100% SMEA SpA 300
---------- ------------------------------ --------- ----------------------------
MINORI 4 100% SMEA SpA 300
---------- ------------------------------ --------- ----------------------------
Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili Limited, 20%
owned by CMP (Compañía Minera del Pacífico).
Corporate Directory
Directors Solicitors
Dr Nicole Adshead-Bell (Resigned 11 Australia
March 2025)
(Independent Non-Executive Chairman) Blackwall Legal LLP
Level 26, 140 St George's Terrace
Christian Easterday PERTH WA 6000
(Managing Director)
Canada
Roberto de Andraca Adriasola Bennet Jones
(Non-Executive Director) 3400 One First Canadian Place
P.O. Box 130
Mark Jamieson Toronto ON, M5X 1A4
(Non-Executive Director)
Share Registries
Stephen Quin (Resigned 11 March 2025)
(Independent Non-Executive Director) Australia
Computershare Investor
Company Secretary Services Pty Limited
Carol Marinkovich Level 17, 221 St Georges Terrace
PERTH WA 6000
Executive Management Telephone: +61 (0)8 9323 2000
Facsimile: +61 (0)8 9323 2033
Jose Ignacio Silva
(Executive Vice President) Canada
Computershare Investor Services Inc
Grant King 100 University Ave, 8th Floor
(Chief Operating Officer) Toronto ON, M5J 2Y1
Telephone: +1 416 263 9200
Principal Place of Business Facsimile: +1 888 453 0330
and Registered Office
First Floor, 768 Canning Highway Auditor
APPLECROSS WA 6153
Telephone: +61 (0)8 9315 9009 RSM Australia Partners
Facsimile: +61 (0)8 9315 5004 Level 32, Exchange Tower
Email: admin@hotchili.net.au 2 The Esplanade
Web: www.hotchili.net.au PERTH WA 6000
Stock Exchange Codes Principal Banker
ASX: HCH Westpac Banking Corporation
Hannan Street
KALGOORLIE WA 6430
National Australia Bank
Level 12, 100 St Georges Terrace
PERTH WA 6000
TSXV: HCH
OTCQX: HHLKF
View original content to download multimedia:https://www.prnewswire.com/news-releases/half-yearly-report-hot-chili-limited-and-controlled-entities-interim-financial-report-for-the-half-year-ended-31-december-2024-302401863.html
SOURCE Hot Chili Limited
(END) Dow Jones Newswires
March 14, 2025 07:00 ET (11:00 GMT)
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