The company executed a letter of intent with Puerto Las Losas (PLL) to negotiate a port access and port services agreement for PLL's facilities at Huasco, about 50km west of Costa Fuego's proposed processing plant.

PLL will finance a study for port services, including any required upgrades, using the existing PLL dock for the shipment of copper concentrates and other materials related to the future construction and operation of Costa Fuego. Hot Chili expects to receive a binding offer for port services within 12 weeks.

"Leveraging off existing port infrastructure will materially reduce Costa Fuego's environmental footprint during construction and operations. As no new port or areas will be required for construction or subject to environmental permitting, we expect a positive impact to our construction capital requirements and overall permitting/construction timelines," said Hot Chili country manager and chief legal counsel Jose Ignacio Silva.

Hot Chili plans to issue a resource update during the March quarter combining the Cortadera and Productora deposits of Costa Fuego, as it aims to publish a pre-feasibility study in the September quarter.

Shares in Hot Chili are trading at A$1.73, valuing the company at $189 million.