Detailed mapping and geophysics is planned for the first half of 2021 in advance of first-pass drilling, with assay results pending for mapping and soil geochemical work already completed in December and January across Santiago Z.
The Santiago Z ground is primarily contained within exploration leases privately held by the same Chilean landowner with whom Hot Chili has an option agreement in-place across the San Antonio high grade copper mine.
The landowner has included the Santiago Z leases in the San Antonio option ("at no cost"), and revised the time frame to enable Hot Chili to asses both parcels of ground such that US$200,000 in extension fees are to be paid -with $100,000 already paid - ahead of a first option fee of $300,000 due in November 2022.
A final option instalment payment of $6.7 million is due in November 2023.
The new deal comes with Hot Chili expecting new assay results "shortly" from 40,000m of drilling at Cortadera, ahead of a resource upgrade later this year.
The company is also said to be advancing development studies.
Hot Chili raised A$25.6 million late last year by issuing new shares to investors priced at 4.2c each, with US$10 million of the raising going towards the acquisition of Cortadera.
It also recently flagged up to A$4 million in VAT payments coming its way.
Shares in Hot Chili were unchanged at 4.8c in afternoon trade, capitalising the company at $147 million.
