Hot Chili (ASX:HCH) closed a private placement, raising approximately $40 million through the issuance of over 24 million new shares.
The capital injection, priced at $1.65 per share, saw robust participation from institutional and professional investors across Australia, North America, and overseas.
The placement was oversubscribed and backed by the company's three largest shareholders: mining giant Glencore, Blue Spec, and GS Group, signaling strong industry confidence in Hot Chili's strategic direction.
The proceeds are earmarked for the aggressive expansion of the Costa Fuego project in Chile.
Managing Director Christian Easterday highlighted that the funding will allow the company to integrate its third major discovery, La Verde, into the project’s broader economic framework.
By scaling up the resource, Hot Chili aims to solidify Costa Fuego’s status as one of the few massive, independent copper-gold deposits capable of entering production this decade.
Beyond drilling, the funds will facilitate the submission of a critical environmental impact assessment later this year, a vital hurdle for near-term production.
At the time of reporting, Hot Chili’s share price was $1.68.