Chilean copper-gold explorer Hot Chili (ASX: HCH) has begun the process to list its shares on the TSX Venture Exchange (TSX-V) by the end of 2021, saying this is a key step to financing development of its Costa Fuego copper project in Chile.
Hot Chili has so far paid its application fees, appointed legal advisers and begun the formal application process.
It says that the Canadian market has a proven track record in supporting large-scale exploration and development companies in the copper and gold space.
It cites the examples of Australian companies that dual listed in Canada and then were targets of multi-billion-dollar takeovers — Equinox Minerals taken out by Barrick Gold and Andean Resources by Goldcorp.
Costa Fuego currently has a resource of 724 million tonnes grading 0.48% copper-equivalent for 2.9Mt of copper, 2.7Moz of gold, 9.9Moz silver, and 64,000t of molybdenum.
Further project news flow expected soon
The company said today that further news flow from Costa Fuego is expected soon with three drill rigs in action, pre-feasibility studies underway, and multiple exploration programs advancing on the company’s Cortadera and Santiago Z copper projects.
Hot Chili noted that a TSX-V listing would position it among its Canadian peers that trade at “significantly’ higher valuation multiples and which control other leading copper developments in South America.
These companies include Marimaca Copper in Chile, Filo Mining (Argentina), Solaris Resources (Ecuador), Josemaria Resources (Chile) and SolGold (Ecuador).
Second overseas listing
Success with its TSX-V listing would make this the second overseas move this year by Hot Chili.
In May, the company received approval to trade in the US-based OTCQB Venture Market, after it met the exchange’s financial and corporate governance standards.
The OTCQB provides live market trading in developing companies that hold primary listings in other markets.
Hot Chili said at the time the move would enhance visibility and accessibility of Hot Chili to Northern American shareholders.
One of the largest copper developments in Chile
Hot Chili created Costa Fuego by combining its Cortadera and Productora projects as one central development hub that, it has said, has cemented the project as one of the largest copper developments in Chile.
Hot Chili recently noted that Productora’s value had been enhanced by the high copper prices, but also because electricity prices are now lower than they were in 2016.
Since that year, the central and southern Chilean power grids have been connected, allowing a large influx of solar power from the Atacama region.
In addition, several large solar projects are operating in the vicinity of Costa Fuego.