- Kobrea Exploration (CSE:KBX) signed an alliance agreement with BHP Metals Exploration, a division of the world’s largest copper producer, to explore its 73,334-hectare Western Malargüe copper projects in Mendoza Province, Argentina.
- The junior copper company is advancing a seven-project, 733-square-kilometre portfolio in Argentina.
- Kobrea Exploration stock has given back 26.53 per cent year-over-year.
Kobrea Exploration (CSE:KBX) signed an alliance agreement with BHP Metals Exploration, a division of the world’s largest copper producer, to explore its 73,334-hectare Western Malargüe copper projects in Mendoza Province, Argentina.
The district-scale Western Malargüe hosts more than a dozen porphyry copper and copper-gold prospects on the Neogene Porphyry Belt, which includes Los Bronces (134.8 million tons of copper) and El Teniente (128.5 million tons of copper), the second and third-largest copper deposits in the world.
Under the agreement, Kobrea will receive a US$3 million upfront cash payment to advance the work program, with BHP Metals set to fund a minimum of US$5 million in exploration expenditures over a 2-year period with the potential for expansion.
During this two-year period, BHP Metals will have the option to designate up to four projects for earn-ins, granting it 75 per cent options on each project by exclusively funding a minimum of US$40 million in exploration expenditures over eight years.
Kobrea will serve as operator during the initial two years of exploration, after which BHP may choose to take over, though all work will be overseen by a management committee including members from both companies.
According to Wednesday’s news release, Kobrea will retain a 25 per cent interest in any project that completes its earn-in agreement.
Leadership commentary
“This alliance with BHP Metals Exploration represents a transformational milestone for Kobrea and demonstrates confidence in the Western Malargüe copper projects and the work our technical team has completed to date,” James Hedalen, Chief Executive Officer of Kobrea Exploration, said in a statement. “Our team has assembled an exceptional district-scale land package and identified numerous compelling porphyry copper targets across the project portfolio. Partnering with one of the world’s leading mining companies brings the technical expertise, global best practices and financial strength needed to systematically evaluate and responsibly advance these projects. We retain meaningful long-term exposure in any project advanced to a joint venture, providing our shareholders with significant upside as the district is explored and developed.”
About Kobrea Exploration
Kobrea is a junior mining company after base metals across a seven-project, 733-square-kilometre portfolio in Argentina notable for several multi-kilometre hydrothermal alteration footprints.
Kobrea Exploration stock (CSE:KBX) is down by 8.86 per cent trading at C$0.36 as of 10:41 am ET. The mining stock has given back 26.53 per cent year-over-year.
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