Hot Chili Limited (ASX: HCH, TSXV: HCH) has entered into an amended investment agreement with OR Royalties Inc. to secure US$15 million in non-dilutive funding. The deal expands the existing royalty footprint at the company’s flagship Costa Fuego copper-gold project in Chile by including the La Verde discovery under a net smelter return royalty arrangement. This transaction, expected to close in July 2026, brings the total royalty consideration provided by OR to US$30 million.

The capital injection arrives as the company pursues an aggressive development schedule for the project. By securing this funding, the developer avoids equity dilution while adding balance sheet flexibility to support its ongoing work programs. The agreement includes provisions for a right of first offer regarding future royalty or stream interests, alongside structured buyback options that allow the company to reduce royalty percentages on copper and gold if a change of control occurs.

"This transaction achieves two things simultaneously: it funds the advancement of La Verde without share dilution; and it gives the market a credible third-party datapoint on the value of an asset that has yet to be formally quantified. We look forward to rewarding OR's confidence with results." — Christian Easterday, Managing Director - Hot Chili

This latest financing follows the company's successful A$40 million equity raise completed in the first quarter of 2026, which provided significant capital to accelerate growth initiatives. Management is currently focused on several high-priority milestones to unlock value across the project. Notably, the team has three drill rigs in active operation at La Verde, generating the data necessary to support the upcoming maiden Mineral Resource Estimate for that specific discovery.

Beyond the immediate exploration success, the company is also progressing toward the delivery of a revised Pre-Feasibility Study for the broader Costa Fuego hub. This study will integrate the recent exploration findings into an updated mine plan, establishing a comprehensive development path for the copper-gold assets. As the exploration team continues to delineate the scale of the porphyry system, the focus remains on transforming these early-stage results into a formal, technically defined resource base to underpin future production plans.

Read the full announcement: Hot Chili Secures US$15 Million with OR Royalties Inc