Hot Chili (ASX:HCH) has secured an additional US$15 million ($21.6 million) from OR Royalties (TSE:OR) through an amended royalty agreement that extends coverage to the La Verde copper-gold discovery.
The investment agreement brings total royalty consideration under the OR arrangement to US$30 million, with the latest US$15 million payment expected at closing this month (July 2026).
The agreement adds the La Verde Project to OR’s existing royalty footprint across the broader Costa Fuego Copper-Gold Project in Chile’s Huasco Valley.
According to Hot Chili, the transaction represents a “significant endorsement” of La Verde’s potential, with OR committing to a current pre-resource asset after previously backing Costa Fuego when it carried a 725 million tonne (Mt) indicated mineral resource estimate (MRE).
Hot Chili has since updated Costa Fuego’s resource to 798Mt @ 0.45% copper equivalent, which underpinned a Prefeasibility Study (PFS) completed in March 2025.
The funding follows a $40 million equity raise in February 2026 and provides non-dilutive capital for advancing La Verde, where three drill rigs are currently operating.
Managing Director Christian Easterday says OR’s commitment to La Verde speaks directly to the scale of what the company sees at the project.
“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,” Easterday says.
The royalty structure maintains OR’s existing 1.0% net smelter return on payable copper production and 3.0% on payable gold production, equivalent to a 1.12% copper equivalent net smelter return royalty across payable metals.
Hot Chili retains buyback options under modified terms, with the ability to reduce the royalty to 0.5% on copper and 2.5% on gold if a change of control occurs within four years of the original closing.
Under the agreement, OR also maintains a right of first offer on any future royalty or streaming arrangements by Hot Chili.
National Bank Financial (TSE:NA) serves as Hot Chili’s financial advisor, while Bennett Jones provides Canadian legal counsel for the transaction.
The company expects to deliver a maiden MRE for La Verde and a revised PFS for Costa Fuego.
Hot Chili is focused on developing the Costa Fuego Copper-Gold Project in Chile’s Atacama region.
Write to Paula Fabe at Mining.com.au
Images: Hot Chili
