Announcement - Entitlement Offer Fully Subscribed

Rhea-AI Summary

Hot Chili Limited (OTCQX: HHLKF) has successfully completed its fully subscribed entitlement offer, raising A$14.1 million before costs. The pro-rata non-renounceable offer consisted of 2 new shares for every 13 shares held, priced at A$0.60 per share, with strong demand from Australian, Canadian, and international shareholders.

The funds will support key developments at the Costa Fuego copper-gold project in Chile, including completion of the company's asset-level strategic partnering process and commencement of phase-two diamond drilling at the La Verde copper-gold discovery. A total of 23,648,329 New Shares were accepted under the Entitlement Offer and shortfall facility, with new shares to be issued on September 9, 2025.

Positive

• Successfully raised A$14.1 million through fully subscribed entitlement offer
• Strong demand from international shareholders demonstrates investor confidence
• Funding secured for strategic growth initiatives including diamond drilling at La Verde discovery
• Costa Fuego positioned as one of few large-scale copper projects with near-term production timeline

Negative

• Potential dilution for shareholders who did not participate in the entitlement offer
• Future success dependent on exploration results and strategic partnering process outcomes

Highlights

• A$14.1M Entitlement Offer received strong demand from Australian, Canadian and international shareholders
  
• Completion of the Entitlement Offer provides funding to deliver the following key milestones in the growth and development of the Costa Fuego copper-gold project, located in the coastal range of Chile:
  • Completion of the Company's asset-level strategic partnering process (as announced on 5 August 2025)
  • Commencement of phase-two diamond drilling at the La Verde copper-gold discovery expected to facilitate a maiden mineral resource estimate
• Further updates expected as the Company accelerates its growth and development plan with strengthened treasury and a strong copper and gold price environment

PERTH, Australia, Sept. 5, 2025 /PRNewswire/ - Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) ("Hot Chili" or the "Company") is pleased to announce that its previously announced entitlement offer closed fully subscribed. The pro-rata non-renounceable entitlement offer of 2 (two) fully paid ordinary shares in the Company ("New Shares") for every 13 (thirteen) fully paid ordinary shares held by eligible shareholders at the record date of 8 August 2025, at an issue price of A$0.60 (60 cents) per New Share ("Entitlement Offer") raised A$14.1 million before costs.

The Entitlement Offer received strong demand from eligible shareholders in Australia, Canada and other eligible international jurisdictions.

Proceeds from the fully subscribed Entitlement Offer, in addition to existing treasury, will provide funding to be used for the completion of the Company's asset-level, strategic partnering processes being led by BMO Capital Markets, diamond drilling at La Verde and ongoing development studies, exploration and for general working capital.

The New Shares will be issued on Tuesday, 9 September 2025.

Managing Director & CEO Christian Easterday commented:

"On behalf of the Board, I'd like to sincerely thank our shareholders for their continued support to achieve this outstanding result.

To raise the full $14.1 million is a strong validation of Hot Chili's Costa Fuego Project as one of only a few large-scale copper projects in the development pipeline with near term production timelines."

The Entitlement Offer closed on 2 September 2025. Eligible shareholders who applied for their entitlements in full were able to apply for additional New Shares under the ancillary shortfall facility. Eligible shareholders who applied for additional shares through the shortfall facility and were not allotted the full amount will receive a refund of the excess application monies to their registered bank account.

Valid applications have been received and accepted for a total of 23,648,329 New Shares under the Entitlement Offer and shortfall facility to raise A$14,188,997 (before costs).

This announcement is authorised by the Board of Directors for release to ASX and TSXV.

For further information, please contact:

Christian Easterday Managing Director & CEO – Hot Chili	Tel: +61 8 9315 9009 Email: admin@hotchili.net.au
Carol Marinkovich Company Secretary – Hot Chili	Tel: +61 8 9315 9009 Email: cosec@hotchili.net.au
Graham Farrell Investor & Public Relations	Email: graham@hotchili.net.au

or visit Hot Chili's website at www.hotchili.net.au

Qualifying Statements

Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This announcement contains certain statements that are "forward-looking information" within the meaning of Canadian securities legislation and Australian securities legislation (each, a "forward-looking statement"). Forward-looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward-looking statements included in this announcement should not be unduly relied upon. Forward-looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "estimate", "expectations", "may", "plan", "potential", "project", "reinforce", "unlock", "large-scale", "could", "should", "will", "would", variants of these words and similar expressions are intended to identify forward-looking statements.

The forward-looking statements within this announcement are based on information currently available and what management believes are reasonable assumptions. Forward-looking statements speak only as of the date of this announcement.

In this announcement, forward-looking statements relate, among other things, to: the timing of the issuance of the New Shares; the anticipated use of proceeds from the Entitlement Offer; the results of the asset-level strategic partnering process; the potential of the La Verde discovery, including the timing and ability, if at all, to publish a maiden mineral resource estimate; acceleration of the Company's its growth and development plan; and the Company's future exploration and other business plans.

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 announcement, including, but not limited to, the following material factors: the results of the asset-level strategic partnering process; the ability of drilling and other exploration activities to accurately predict mineralisation; operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operations in Chile; changes in estimates of mineral resources or mineral reserves of properties where the Company holds interests; recruiting qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuations in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at or performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and market conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's public disclosure record.

Although the forward-looking statements contained in this announcement 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 announcement, 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 has included the above summary of assumptions and risks related to forward-looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. 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 announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. 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 announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.

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SOURCE Hot Chili Limited

FAQ

How much did Hot Chili Limited (HHLKF) raise in its 2025 entitlement offer?

Hot Chili raised A$14.1 million before costs through a fully subscribed entitlement offer at A$0.60 per share.

What is the purpose of Hot Chili's 2025 capital raising?

The funds will be used for completing the asset-level strategic partnering process, diamond drilling at La Verde copper-gold discovery, development studies, exploration, and general working capital.

What was the entitlement offer ratio for HHLKF shareholders?

Eligible shareholders could subscribe for 2 new shares for every 13 shares held at the record date of August 8, 2025, at A$0.60 per share.

When will Hot Chili Limited issue the new shares from the entitlement offer?

The new shares from the entitlement offer will be issued on Tuesday, September 9, 2025.

How many new shares were issued in Hot Chili's 2025 entitlement offer?

A total of 23,648,329 new shares were accepted under the Entitlement Offer and shortfall facility.