1. Hot Chili announced corrections for Huasco Water's Pre-Feasibility Study. 2. Strong potential for multi-decade seawater supply supports Costa Fuego project. 3. High demand for desalinated water from regional mining and agriculture sectors. 4. First-mover advantage enhances Huasco Water's strategic position in Chile. 5. Significant interest from investors in Huasco Water's strategic partnerships.
The robust economic fundamentals for water supply indicate a highly favorable business model, reflecting similar past successes in the mining sector where early contracts led to increased stock value.
This announcement outlines critical operational developments that enhance overall value and revenue forecasts for HHLKF, making them highly relevant to future stock performance.
Projected water demands and tariffs indicate long-term revenue potential, similar to established mining projects' cash flows over extended periods.
Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is providing corrections to yesterday's news release announcing the Preliminary Feasibility Study ("PFS") for Huasco Water, an 80% owned entity that controls strategic water rights in the Huasco Valley of Chile. The minor corrections are with respect to certain figures that did not align with the correct version that was previously announced on the Australian Stock Exchange.
1 The Huasco Water Supply PFS has been aligned with the preliminary feasibility study for the Company's Costa Fuego project (the "Costa Fuego PFS") and shares the same assumptions for Costa Fuego in stage 1. See announcement dated 27th March 2025 "Hot Chili Announces PFS & Maiden Mineral Reserve for the Costa Fuego Cu-Au Project" outlining the results of the Costa Fuego PFS. An independent technical report for the Costa Fuego PFS, prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and JORC Code 20212 within 45 days thereof.
Hot Chili's Managing Director Mr. Christian Easterday commented,
"We are very pleased to deliver our PFS for Huasco Water which outlines preliminary economic outcomes for a potential long-life industrial water supply business. The Water Supply PFS has been undertaken in conjunction with the Company's recently announced PFS for our Costa Fuego Copper-Gold Project, which outlines a multi-decade project with top quartile copper production capacity and lowest quartile capital intensity."
"The outcomes of the Water Supply PFS provide an opportunity for Hot Chili to fully consider the strategic value of its 80% owned subsidiary company Huasco Water, which controls all our critical water assets. The Company views the potential to outsourcing of its seawater supply infrastructure as a key value-enabler and has anchored Huasco Water by executing an MOU to negotiate a foundational seawater off-take agreement for Costa Fuego."
"The Company has received significant interest in Huasco Water from both Chilean and international water infrastructure investment groups in addition to several neighbouring mine developers, agricultural groups, community groups and government. With PFS level engineering complete for stage 1 and stage 2 water supply, the Company is well positioned to pursue potential strategic partnerships and additional off-taker discussions for Huasco Water."
The Company will be hosting webinars on Monday 31st March 10.00 am EST (for North American audience) to brief shareholders and investors on the outcomes of the Costa Fuego and Huasco Water PFS.
Hot Chili's Chief Executive Officer Christian Easterday, Executive Vice President Jose Ignacio Silva, Chief Operating Officer Grant King and Chief Financial Officer Ryan Finkelstein will be hosting the call, which will also include a Q&A session.
The following links will provide access to the investor briefing webinar:
Register Here for North American Webinar
Monday 31st March at 10.00 am EST
After registering, you will receive a confirmation email containing information about joining the webinar.
For more information please contact:
Christian Easterday
Managing Director – Hot Chili
Tel: +61 8 9315 9009
Email: email@example.com
Carol Marinkovich
Company Secretary – Hot Chili
Tel: +61 8 9315 9009
Email: email@example.com
Graham Farrell
Investor & Public Relations (Canada)
Email: email@example.com
or visit Hot Chili's website at www.hotchili.net.au
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.
This news release does not purport to be complete or contain all the information that may be material to the current or future business, operations, financial condition, or prospects of Hot Chili, Huasco Water or the results of the Water Supply PFS.
Certain information contained herein is based on, or derived from, information obtained from independent third-party sources, publicly available reports and other trade and industry sources...