The metals & mining company, Hot Chili Limited (ASX: HCH) has announced regarding EverBlu Capital (a corporate advisory firm in Australia) publishing a research report on HCH.
Hot Chili retracted on (a) all production targets, financial forecast statements and valuation statements in the EverBlu research report which were not contained in the Company’s announcement of its pre-feasibility study for the Productora Project released to ASX on 2 March 2016 and (b) Appendix 1 of the EverBlu research report, which contained production, financial forecast and valuation statements referred to as “Scenario 1”, “Scenario 2”, “Scenario 3”, “Scenario 4” and “Scenario 5” in the Appendix, and all statements in the research report referring to those scenarios, (the “retracted statements”).
The retracted statements comprised of production targets and valuations based on information not included in the Company’s Productora PFS announcement released on 2 March 2016. There was no reasonable basis for investors to rely on the retracted statements and investors should not rely on such retracted statements for their investment decisions.
On 6 February 2019, HCH announced about its intention to undertake a non-renounceable rights issue of 2 fully paid ordinary shares in the Company (New Shares) for every 7 fully paid ordinary shares in the Company held at 5.00pm (WST) on Monday, 11 February 2019 (Record Date) at an offer price of $0.01 per New Share, to raise up to $2,216,979 (before costs). In a recent update, the Company announced that it had successfully arranged a $1,000,000 (before costs) private placement of fully paid ordinary shares in the Company to various sophisticated and professional investors in Australia, and investors in other jurisdictions, at an issue price of $0.01 per Placement Share
On 4 February 2019, HCH announced that it had executed an Option Agreement to purchase the Purisima mining right, aimed towards Cortadera consolidation.
Cortadera adjoined the Company’s Productora and El Fuego copper projects, located on the Chilean coastal range. Its acquisition would allow Hot Chili an opportunity to develop both bulk tonnage deposits with a central processing option. The drill results from the Cortadera discovery have never previously been publicly released and included numerous significant drilling intersections from over 23,000m of diamond drilling completed till then.
On 31 January 2019, HCH announced the quarterly activities report ending 31 December 2018. During the quarter the Technical assessments were completed across multiple growth project opportunities located within the vicinity of the Company’s Productora copper project in Chile. There was an Advancement of high-level commercial discussions towards the commencement of formal negotiations for a material acquisition opportunity.
For March Quarter 2019, the planned Activities included an announcement of the material acquisition and Contemplation of the funding for the provision of additional finance for working capital purposes.
At the end of trading session, the stock of the company stood at A$0.014 (as at 12 February 2019), with no changes in the day’s price.
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