Osisko Gold in Royalty Deal for Hot Chili Project in Chile

By Robb M. Stewart

Osisko Gold Royalties has agreed to a $15 million royalty deal with Hot Chili Ltd. for the Costa Fuego copper-gold project in Chile
The Montreal-based company said it entered a binding agreement to buy a 1% copper net smelter return royalty and a 3% gold royalty covering the undeveloped project.

Osisko said it has granted Australia’s Hot Chili an option to buy down a portion of the royalty if there is a change of control, exercisable until the fourth anniversary after the transaction closes. The option could reduce copper and gold royalties by half a percentage point.
Hot Chili has given Osisko the right of first offer on all future potential royalty and streaming opportunities, as well as certain rights on proposed future royalty financing, Osisko said.
The Costa Fuego project contains three deposits in the Atacama region of Chile. A prefeasibility study is expected in 2024, following the completion of a drilling campaign that is planned for this year, the company said.
Write to Robb M. Stewart at robb.stewart@wsj.com