Hot Chili (ASX: HCH) continues to attract the interest of Chilean resources major Compañia de Aceros del Pacifico, which will take up a $4 million placement.
The placement will include close to 8.1 million shares at $0.50, and increase Compañia de Aceros shareholding to over 5%. There will also be a one from A$0.75 option for every two shares, expiring late 2014.
Hot Chili has room under its 15% capacity limit to complete the placement.
Hot Chili recently completed a A$35.5 million share placement, of which affiliates of highly-regarded Australian fund Taurus Funds Management, affiliates of North American Sprott Inc and the well-respected Canadian resources group Lundin Mining Corporation took up more than half.
Following completion of its placements and forthcoming SPP offer Hot Chili will have over $45 million in available cash reserves.
Compañia de Aceros is the parent company of Compañía Minera del Pacífico S.A., Chile’s largest iron ore producer and integrated steel business.
Hot Chili and Compañia de Aceros are currently investigating potential avenues in which to co-operate in the development of the Productora copper project in Chile.
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