Hot Chili Launches New Water Company - Huasco Water
Highlights
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Hot Chili El Huasco SpA " (Huasco Water) -
Hot Chili Hot Chili's Costa Fuego copper-gold project inChile - Transfer of all water assets (maritime water extraction licence, water easements, costal land accesses and second maritime application) from SMEA to Huasco Water has commenced
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Huasco Water aims to develop a multi-user seawater and desalinated water supply network to supply future water demand for communities, agriculture and new mining developments for the
Huasco Valley region ofChile -
Hot Chili and CMP underpin Huasco Water as potential foundation off-takers (Hot Chili's Costa Fuego copper project - approx. 700 l/s of future sea water demand and CMP's Los Colorados iron ore mine - approx. 200 l/s of future desalinated water demand) -
First water off-taker discussions underway with nearby mine developers accounting for 3,700 l/s of potential future desalinated water demand with additional non-mining, desalinated water customers also identified within the
Huasco Valley , proximal toHot Chili's Costa Fuego copper hub - Further updates on Water Supply Business Case Study and potential off-taker discussions expected
A conceptual study completed by
Transfer of water assets (previously held by SMEA) into Huasco Water has commenced and the new water company will soon hold the only active granted maritime water concession and most of the necessary permits to provide non-continental water supply to the
Importantly, Huasco Water provides
Discussions with other potential water off-takers are advancing well and the Company is pleased to confirm that several non-mining desalinated water customers have also been identified. The Company is progressing discussions with several potential Tier-1 infrastructure partners and further updates are expected.
Recent Deal in
- Copper mining major Antofagasta have sold their water assets and water rights to the Centinella copper mine for
US$600 million to a consortium (Transelec andAlmar Water ), which will also Finance, Build, Own, Operate (BOO) and sell seawater for the Centinella mine expansion, aiming to increase copper metal production by 140ktpa, - The Centinella copper mine is operated using seawater for processing,
- The existing Centinella water assets include a 144km long seawater pipeline from port to mine, which
Transelec and Almar will acquire and continue supplying Centinella with approximately 1,200 l/s, -
Transelec and Almar will build a parallel 144km long seawater pipeline using Centinella's water rights to supply an additional 650 l/s to Centinella, - Antofogasta to save
$380M in capital expenditure for the construction of its stage 2 water infrastructure expansion, - Centinella water expansion project will begin operations in 2026 following a 20-month construction process.
The transaction announced by Antofagasta highlights the strategic nature and implicit value of critical water access rights within the Atacama region, and an increasing trend in
Importantly,
This announcement is authorised by the Board of Directors for release to ASX and TSXV.
For more information please contact:
Managing Director – |
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Tel: +61 8 9315 9009 Email: admin@hotchili.net.au
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Company Secretary – |
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Email: admin@hotchili.net.au
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Investor & Public Relations |
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or visit
Qualifying Statements
Disclaimer
Neither the
Qualified Person
The technical information in this news release has been reviewed and approved by Mr.
All amounts in this news release are in
Forward Looking Statements
This news release contains certain statements that are "forward-looking information" within the meaning of Canadian and Australian securities legislation (each, a "forward-looking statement"). All statements other than statements of historical fact are forward-looking statements. The use of any of the words "believe", "could", "estimate", "expect", "may", "plan", "potential", "projections", "should", "will", "would", variants of these words, and similar expressions are intended to identify forward-looking statements. The forward-looking statements within this news release are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements attributed to third-party industry sources, the accuracy of which has not been verified by the Company.
In this news release, forward-looking statements relate, among other things, to: the Completion, timing, cost and results of a Water Supply Business Case Study; the execution of water off-take agreements including the approval of the ASX and/or TSXV (if required) and any other regulatory approvals; prospects, projections and success of the Company and its projects; the Company's ability to secure a suitable water infrastructure partner; the timing and outcomes of future planned economic studies; the timing and outcomes of regulatory processes required to obtain permits for the development and operation of a multi-user, sea water and desalinated water business as contemplated in the Water Supply Concept Study; whether or not the Company, with or without partners, will make a finance and development decision and the timing thereof.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this news release, including, but not limited to, the following material factors: the ability of the Company to complete the Water Supply Business Case Study, securing water off-take customers; obtaining all required regulatory approvals to develop a regional water network; operational risks; sovereign risks associated with the Company's operations in
Although the forward-looking statements contained in this news release are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.
For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The forward-looking statements contained in this news release are expressly qualified by the foregoing cautionary statements and are made as of the date of this news release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Information contained in this news release, including information concerning recent water infrastructure transactions, are based on information from third-party sources. Although the Company believes the third party-sources are reliable, the Company cannot guarantee the accuracy or completeness of those sources as they have not been independently verified by the Company.
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