Hot Chili Limited announced that the company has entered into a binding letter of intent (LOI) with Bastion Minerals Limited for the grant to Hot Chili of an option to acquire 100% of Bastion's Cometa Project in Chile ("Cometa"), located near Hot Chili's Costa Fuego Copper-Gold Project ("Costa Fuego" or "the Project") in the coastal range of the Atacama Region, Chile. Cometa consists of exploration and mining concessions covering approximately 56km2 in area located approximately 15km southeast of Costa Fuego's planned operating centre and contiguous with Hot Chili's landholdings in the region. The option is another step in Hot Chili's consolidation strategy for the Costa Fuego copper project.

The material terms of the LOI are as follows: Exclusivity period of 60 days for Hot Chili to conduct due diligence and for Hot Chili's subsidiary Sociedad Minera La Frontera SpA ("Frontera") to enter into a definitive option agreement with Bastion's subsidiary SCM Cornet Constelación, the holder of a 100% interest in the concessions comprising Cometa, for the grant to Frontera of an option to acquire a 100 interest in the Cometa concessions ("Option"). Non-refundable cash payment of USD 100,000 to Bastion upon grant of the Option. Non-refundable cash payment of USD 200,000 within 12 months from the grant of the Option to keep the Option in good standing.

Option may be exercised within 30 months of the date of grant. If the Option is exercised, the consideration payable to Bastion to purchase the Cometa concessions is: USD 2,400,000 if the Option is exercised by Hot Chili within 18 months from the date of grant of the Option; or USD 3,000,000 if the Option is exercised by Hot Chili within 30 months from the date of grant of the Option. Hot Chili may elect to satisfy the purchase consideration in cash (100%), or in cash (50%) and ordinary shares of Hot Chili (50%) issued at a price per share equal to the 15-day VWAP at the date of exercise of the Option, subject to applicable regulatory approvals, including the approval of the TSX Venture Exchange.