Highlights
- Hot Chili has completed a Water Supply Concept Study for the
Huasco valley region of Chile,
confirming the potential for a large, multi-user, desalination
water supply network
- Hot Chili holds the only active granted maritime water
concession and most of the necessary permits to provide
critical water access to the Huasco valley region
- Huasco valley region contains six major undeveloped
copper projects and two new large-scale greenfield copper
discoveries, all of which require desalinated water
supply
- Water Supply Business Case Study now underway to assess a
potentially 100% renewable energy driven desalination water
business to supply community, agricultural and new mining
demand of up to 3,700 litres per second (l/s) over the
long-term
- Staged water network development being studied, with
initial 300 l/s scale supported by potential foundation
off-takers, including Hot Chili
- Significant economic, environmental and social synergies
identified for all potential customers
- Potential customer and infrastructure partner engagement
process commenced
Hot Chili's
Managing Director and CEO, Christian Easterday said:
"The opportunity to develop a regional water business for
the southern Atacama is exciting. It brings together
the perfect marriage
of economic, environment and social benefits
for a wide range of stakeholders.
One, single, desalination water supplier, with the
potential to unlock several significant mining investments, is a
blueprint for the future of responsible water supply in the Atacama
and a significant opportunity to surface value for Hot Chili,
following over 10 years of investment to obtain the necessary water
concession and permits."
PERTH,
Australia, Feb. 26, 2024 /CNW/ - Hot Chili Limited
(ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the
"Company") is pleased to report that the Company has completed an
initial concept study for a potential water supply business for the
Huasco valley region of Chile.
Hot Chili
holds the only granted maritime
water concession and most necessary
permits to provide critical
water access to the Huasco
valley region following
over a decade of permitting advance for the Company's
coastal range, Costa Fuego copper-gold project.
While Costa Fuego's mine development plan considers the use of raw seawater
for future processing, the Water Supply Concept
Study (the "Study") confirms potential to also develop a large,
multi-user, desalination water supply business.
The Study outlines an opportunity to develop a potentially 100%
renewable energy driven desalination water business to supply
community, agricultural and new mining demand of up to 3,700 litres
per second (l/s) over the long-term. Staged development
scenarios were assessed considering an initial development of a 300
l/s desalination plant being supported by potential foundation off
take partners, including Hot Chili.
Water
scarcity in the Atacama region of South America is one of the largest
challenges facing new global copper supply.
Leveraging Hot Chili's water assets to enable the development of
multiple, nearby, large-scale copper projects, comes at a time
where Chile's government is
actively encouraging investment in multi-user desalination water
networks in the Atacama.
Similar market, regulatory and commercial conditions occurred in
Chile's energy market ahead of a
surge in renewable power investment over the past decade, which has
led to a dramatic reduction in energy costs across the Atacama
region.
A Water Supply Business Case Study is now underway, and the
Company has commenced early engagement with potential desalinated
water customers. In addition, Hot Chili is also engaging with
several large, potential water infrastructure partners.
Key Outcomes from the Water Supply Concept
Study
Market Opportunity
- Located in the southern Atacama with a 150 km area of
influence.
- Multiple potential customers:
- CMP (Los Colorados)
- Nueva Union (Relincho and La
Fortuna)
- Lundin Group Developments (Josemaria, Filo del Sol and Los Helados)
- Hot Chili (Costa Fuego)
- Huasco Valley Communities (multi-purpose)
- Total water demand estimated at over 3,700 l/s in the
long-term
- Initial stage of development estimates water demand of 300 l/s
including Hot Chili as potential foundation customer
- Long term business from which other industrial/mining projects
can be incorporated
Engineering
- Infrastructure/assets considered: Water intake, desalination
plant, discharge, distribution, waste collection, distribution
points
- Similar projects of this nature are being completed in
Chile, e.g. Aguas Horizonte (Joint
Venture between CODELCO and Marubeni)
- Secured electrical concession rights to grid (Maintencillo
substation)
- Pipeline right of way secured from coast to Costa Fuego
- Opportunity to utilise 100% renewable energy
- Large amount of local engineering and construction expertise
available
- Access to existing infrastructure
- Existing road network facilitate the supply to communities and
reduce environmental/permitting risks
Stakeholder and Regulatory
- Good relationship with local communities. Early engagement
process ongoing
- Granted maritime concession with land access (Huasco
department) large enough to support the infrastructure needed
- Second maritime concession filing process underway, near Hot
Chili's current maritime concession, to facilitate desalinated
water supply
- Legal/Environmental due diligence and market assessment
supports the business opportunity case
- Potential for direct government support being reviewed
- Potential customer engagement commenced
Financing and Investment
- Market interest is high from organisations recognising the
opportunity to participate in an early life cycle project with
strong foundations
- Opportunity to explore a range of financing and investment
options
- Water Supply Concept Study provides basis for further detailed
engineering studies for the full development plan to commence in
March 2024
The Company looks forward to providing
further updates on its Costa Fuego copper-gold
project and Hot Chili's advancement of economic, social and
environmental synergies for the Huasco valley region.
This announcement is authorised by the Board of Directors
for release to ASX and TSXV.
Hot Chili's Managing Director and Chief Executive Officer Mr
Christian
Easterday is responsible for this announcement and
has provided sign-off for release to the ASX and TSXV.
For more information please contact:
Christian Easterday
Managing Director – Hot
Chili
|
Tel:
+61 8 9315 9009
Email:
admin@hotchili.net.au
|
Penelope Beattie
Company Secretary – Hot
Chili
|
Tel:
+61 8 9315 9009
Email:
admin@hotchili.net.au
|
Harbor Access
Investor & Public
Relations
|
Email:
graham.farrell@harbor-access.com
Email:
jonathan.paterson@harbor-access.com
|
or visit Hot Chili's
website at www.hotchili.net.au
Qualifying Statements
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 news release.
Qualified Person
The technical information in this news release has been reviewed
and approved by Mr. Christian
Easterday, MAIG, Hot Chili's Managing Director and a
qualified person within the meaning of NI43-101.
All amounts in this news release
are in U.S. dollars unless
otherwise noted.
Forward Looking Statements
This news release contains certain statements that are
"forward-looking information" within the meaning of Canadian
securities legislation and Australian securities legislation (each,
a "forward-looking statement"). 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",
"projections", "should", "will", "would", variants
of these words, and similar expressions are intended
to identify forward-looking statements. The forward-looking statements within this news release
are based on information currently available and what
management believes are reasonable assumptions. Forward-looking
statements speak only as of the date of this news release. In
addition, this news release may contain forward-looking statements
attributed to third-party industry sources, the accuracy of which
has not been verified by the Company.
In this news release, forward-looking statements relate, among
other things, to: the Ccompletion, timing, cost and results of a
Water Supply Business Case Study; the execution of water off-take
agreements including the approval of the TSXV (if required) and any
other regulatory approvals; prospects, projections and success of
the Company and its projects; the Company's ability to secure a
suitable water infrastructure partner; the timing and outcomes of
future planned economic studies; the timing and outcomes of
regulatory processes required to obtain permits for the development
and operation of a multi-user desalination water business as
contemplated in the Water Supply Concept Study; whether or not the
Company will make a finance and development decision and the timing
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 news release,
including, but not limited to, the following material factors: the
ability of the Company to complete the Water Supply Business Case
Study, securing water off-take customers; obtaining all required
regulatory approvals to develop a regional water network;
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 news release and
elsewhere in the Company's public disclosure record.
Although the forward-looking statements
contained in this news release 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 news
release, 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'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 news release
are expressly qualified by the foregoing cautionary statements and
are made as of the date of this news release. 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 news release or to reflect the occurrence of
unanticipated events, whether as a result of new information,
future events or results, or otherwise.
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SOURCE Hot Chili Limited