Hot Chili Limited: Pre-Feasibility Study Reveals Strong Economics for Huasco Water
Perth, Australia, March 31, 2025 – Hot Chili Limited (ASX: HCH, TSXV: HCH, OTCQX: HHLKF) (“Hot Chili” or the “Company”) is thrilled to share the results of a Pre-Feasibility Study (PFS) conducted for its subsidiary, Huasco Water. Huasco Water, an 80%-owned entity, holds strategic water assets in the Huasco Valley of Chile.
Strong Economics for a Large, Multi-User, Water Business
The PFS focuses on Stage 11 Water Supply, which has the potential to deliver 500 liters per second (L/s) of seawater. The study reveals robust economics for this large-scale, multi-user water business. The post-tax Net Present Value (NPV8%) is calculated at an impressive US$116 million, with an Internal Rate of Return (IRR) of 19%.
Detailed Findings from the PFS
The PFS report indicates that the water treatment plant will have a capacity of 500 L/s, with an average annual production of 127,100,000 cubic meters. This water will be supplied to various users, including mining companies, agriculture, and municipalities, making it a vital resource for the region’s economic growth.
Environmental Considerations
Hot Chili is committed to sustainable practices and has taken environmental considerations into account. The PFS includes plans for a zero liquid discharge system, ensuring that all water is reused or recycled. Additionally, the Company will employ best practices for seawater intake and discharge, minimizing any potential impact on marine ecosystems.
Impact on the Local Community
The successful implementation of this water supply system will significantly benefit the local community. Agriculture in the Huasco Valley will thrive, as farmers will have a consistent water source. Additionally, mining companies will be able to expand their operations, creating jobs and contributing to the regional economy.
Global Implications
The strong economics of Huasco Water’s PFS demonstrate the potential for large-scale, multi-user water businesses. This model could be replicated in other water-scarce regions, addressing the global water crisis and creating new opportunities for businesses and communities.
Conclusion
Hot Chili’s PFS for Huasco Water highlights the significant economic potential of large-scale, multi-user water businesses. With strong economics and a commitment to sustainability, this venture will positively impact the local community in the Huasco Valley while potentially inspiring similar projects around the world. Hot Chili remains dedicated to its mission of creating value for its stakeholders through innovative water solutions.
- Hot Chili Limited announces strong economics for Huasco Water’s PFS
- Stage 11 Water Supply has potential to deliver 500 L/s of seawater
- Post-tax NPV8% of US$116 million and IRR of 19%
- Commitment to sustainable practices and zero liquid discharge system
- Benefits for local community, agriculture, and mining industry
- Global implications for water-scarce regions
