1. Hot Chili Limited's PFS outlines strong economics for its Huasco Water Project. 2. The project signals multi-decade seawater supply to Costa Fuego. 3. Huasco Water expects significant interest from local and international groups. 4. First-mover advantage in regional desalination enhances market position. 5. Project aligns with rising global demand for copper and water supply.
The PFS indicates a viable long-term water supply project, positively impacting HHLKF's valuation. Historical cases show projects with strong economic forecasts typically lead to stock price appreciation.
The project directly impacts HHLKF’s operational and financial outcomes, with high potential revenue generation linked to water demand for copper projects.
The project's stages suggest long-term revenue growth potential as demand for water increases with copper production needs, similar to past successful long-term infrastructure developments.
("Hot Chili" or the "Company") is pleased to announce the results of a Pre-Feasibility Study ("PFS") for the Company's subsidiary Huasco Water, an 80%-owned entity that controls strategic water assets in the Huasco Valley of Chile.
1 The Huasco Water PFS has been aligned with the Costa Fuego PFS, 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".
Hot Chili's Managing Director Mr. Christian Easterday commented,
"We are very pleased to deliver our PFS for Huasco Water with first economics outlining potential for an attractive long-life industrial water project."
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 considers the potential to outsource its water infrastructure for seawater supply to be a value-enabler and have anchored Huasco Water by executing an MOU to negotiate a foundation seawater off-take agreement for Costa Fuego.
The Company has received significant interest in Huasco Water from both Chilean and international water 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 partnership and additional off-taker discussions for Huasco Water.
We look forward to providing further updates on drilling results from our recently confirmed La Verde copper-gold porphyry discovery which is providing an exciting additional growth platform for our shareholders."
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:
Monday 31st March at 10.00 am EST
After registering, you will receive a confirmation email containing information about joining the webinar.
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.
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Under 769C of the Australian Corporations Act the company provides the following 'reasonable grounds' basis for the assessment of its forecast customer base.
Huasco Water is the only company with permitted access to supply industrial scale seawater to the Huasco Valley region. Huasco Water is also advanced in its permitting application to enable its existing maritime concession to be upgraded to provide desalinated water.
The current maritime concession regulatory process in Chile is long, as evidenced by Hot Chili's 10-year lead time to secure its maritime concession. This combined with the current regulatory environment, restricting the use of continental water in the Atacama region of Chile, places Huasco Water's water assets as a key enabler for industrial scale water supply to the Huasco Valley region.
Water supply networks are typically bound by areas of influence related to water transmission distance from intake. This distance has been determined by Huasco Water's independent consulting experts as an area defined by 75km north and 75km south of Huasco Waters permitted water intake location.
Potential alternative far-field water supply networks from the north (Copiapo) or south (La Serena) have been assessed and determined to be economically challenged (from the perspective of capital and operating cost) to provide water supply to the Huasco Valley region.
The PFS process identified the following risks:
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. Hot Chili believes that such information is accurate and that the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibility for the accuracy or completeness of such information.
Statements in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement").
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