Glencore has signed a $14.4mn deal for a 9.99pc share in Hot Chili, a Chile-focused copper junior miner. This investment will aid the company in conducting a feasibility study on Cortadera, its 451mn mt discovery, in the country’s Costa Fuego hub.
Glencore, through this deal, will have the right to appoint a director and members to Hot Chili’s technical steering committee. The company will also be responsible for over 60pc of concentrate produced over eight years if at least a 7.5pc stake is maintained.
The Cortadera porphyries will also be an upgrade in resources in the latter part of the year. Recent drilling at the mine returned a high-grade ore at 1pc copper from 706m of drilling, which shows stability across the northern side of the project.
The site has three drill rigs, and a pre-feasibility study is in progress to determine options for development options for the Cortadera and Productora deposits. The study is expected to be completed in late 2022 and will take into account a concentrator and leach development with a throughput range of 20-30mn mt annually.
Combined resources at Costa Fuego amount to 724mn mt per year, grading 0.48pc copper equivalent to 2.9mn mt copper.