Hot Chili to acquire Cometa copper-gold project in Chile from Bastion Minerals
Hot Chili (ASX: HCH) has executed an option agreement with Bastion Minerals (ASX: BMO) for the right to acquire the Cometa project near its Costa Fuego copper-gold project in Chile.
Cometa consists of exploration and mining concessions covering approximately 56 square kilometres.
It is located 15km southeast of Costa Fuego’s planned operating centre and is contiguous with Hot Chili’s landholdings in the region.
Historical work by Bastion and other explorers has included surface mapping, soil and rock sampling, as well as ground geophysics identifying several targets prospective for breccia-hosted and iron-oxide-copper-gold mineralisation.
Under the terms of the option agreement, Hot Chili will make an upfront non-refundable cash payment of US$100,000 to Bastion and an additional US$200,000 within 12 months to keep the option in good standing.
If the option is exercised within 30 months of the grant date, Hot Chili will pay Bastion another US$3 million to purchase the Cometa concessions.
Multi-commodity company
Bastion is a multi-commodity company focused on battery metals projects in Canada, Sweden and Australia.
In August, the company signed a letter of intent with Hot Chili allowing it to divest the Cometa project.
The transaction is expected to realise near-term value from Cometa for Bastion shareholders and allow it to focus on the exploration and development of the McCombe North and Raleigh Lake lithium projects and the Gyttorp rare earth elements project.
Transaction history
Hot Chili has a history of transactions over the past decade to consolidate its position in the country, most recently executing an option agreement with Antofagasta Minerals SA in November 2022.
The deal with Bastion is considered to be another step in its strategy for the Costa Fuego copper project.
The company is believed to be well-positioned to advance Cometa from its existing exploration base to the north.
It has a highly-experienced team and an active drilling program aimed at expanding the scale of Costa Fuego.