News: HCH Hot Chili arranges up to A$13 million funding, page-16

Existing holders are getting well and truly diluted.

A$13 million convertible note to be converted to shares at A$0.03333 , so 390m shares possible to be issued. Money to be used to repay debt of US$6.5 million and the rest for drilling costs.

Annual Coupon Rate of 8% paid to Note holders on a quarterly basis, payable in cash or shares at the election of Hot Chili

I'm guessing shares will be issued quarterly. So $250,000 worth of shares to be issued quarterly. Price of shares to be determined on average price over 5 days prior to quarter end.

Existing shares on issue of 543,080,278

HCH is looking like going over 1B shares if all notes and interest on notes are converted to shares.

Where are funds going to come from to do a bankable feasibility study . That's going to cost up to $20m , then if the numbers come in ok they will need funds to pay for part of the project development as banks won't lend 100% of the development cost. Up to 3B shares could be on the cards if they need to find another $100m at say 5c a share.,