PERTH,
Australia, April 15, 2024 /CNW/ - Hot Chili Limited
(ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the
"Company") is pleased to report that the Company has submitted a
second maritime concession application to support a potential
multi-user, water network for the Huasco valley area of the
Southern Atacama region of Chile.
Importantly, Hot Chili's second maritime concession application
also includes brine discharge for potential seawater desalination
operations on the Huasco coastline so that both raw seawater and
desalinated water could be provided by a potential water
network.
In addition, the Company is also preparing to transfer its water
assets (maritime concession, costal land accesses and water
pipeline easements etc) into a new stand-alone water company
controlled by Hot Chili.
These next steps follow positive initial engagement with several
potential desalinated water customers in the Huasco valley area as
well as several suitable water infrastructure partners. The
Company is pleased to be positioning its water assets to
potentially generate significant value for Hot Chili's
shareholders.
Hot Chili is the only Company in the region holding a current
granted maritime water concession for extraction, a current
maritime application for extraction and desalinated discharge, and
most necessary permits to provide critical desalinated water supply
to the Huasco valley, 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 Company's recently
announced Water Supply Concept Study (see announcement dated
26th February 2024)
confirmed the potential to also develop a large, multi-user,
desalinated water supply business in the Huasco valley area.
A Water Supply Business Case Study is underway, and the Company
has been engaging with potential desalination water customers,
potential infrastructure partners and Chilean government regulators
since announcement of the outcomes of the Water Supply Concept
Study.
The second maritime concession application is a key next step to
developing a potential desalinated water business to supply
community, agricultural and new mining demand of up to 3,700
litres per second (l/s) over the long-term in the Huasco
Valley.
Leveraging Hot Chili's water assets to enable the development of
multiple, nearby, large-scale mining projects, comes at a time
where Chile's government is
actively encouraging investment in multi-user desalination water
networks in the Atacama.
Hot Chili's Executive Vice President, José Ignacio Silva said:
"Water scarcity is THE critical issue for new mine
developments in the Atacama on both the Chilean and Argentinean
side of the Andes. Hot Chili is the only Company holding most
of the necessary permits required to provide desalinated water to
the Huasco valley – a prolific region for potential new global
copper supply needed to support global electrification and
decarbonation. Securing these assets has involved over a
decade of commitment.
Socially and environmentally, multiclient and multipurpose
water infrastructure is the new reality".
The Company looks forward to providing further updates on its
Costa Fuego copper-gold project and its Water Business Case Study
for the Huasco valley of Chile.
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.
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", "may",
"plan", "potential", "projections", "will", 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 this news release, forward-looking statements relate, among
other things, to: the completion, 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 and required funding; 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