10:34 AM EDT, 03/14/2024 (MT Newswires) -- Hot Chili Ltd. ( HHLKF ) said Thursday that it signed a memorandum of understanding with Puerto Las Losas SA (PLL) to evaluate bulk tonnage loading alternatives for copper concentrates from the company's Costa Fuego copper-gold project in Chile.

Hot Chili ( HHLKF ) jumped 9.2% at last look early Thursday following the news.

Hot Chili ( HHLKF ) said the MOU provides the company with the right to negotiate a binding port services agreement for Costa Fuego for up to five years.

The potential port service agreement would include a "Take or Pay Volume" clause, based on at least 80% of Costa Fuego's projected future annual concentrate production.

Under the terms, Hot Chili ( HHLKF ) and PLL will conduct a port feasibility study, which will be 20% funded by the company. The study is estimated to cost US$4.6 million and would take about two years to complete.

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