Cobalt Blue (ASX:COB) has entered into an agreement with AuKing Mining (ASX:AKN) to earn up to a 75% interest in the Koongie Park Copper-Zinc Project in Western Australia.
Under the agreement, Cobalt Blue, which has a market capitalisation of $23.58 million, will spend up to $2 million on exploration over a three-year period.
If the company does not meet the requirements, AuKing can buy back a 2% interest and return to a 51% interest in the project.
Cobalt Blue CEO Joe Kaderavek says the company is actively expanding its portfolio with high-value projects that have potential to enhance future earnings.
“The Halls Creek Project earn-in is a transformational step, broadening our commodity exposure and strengthening our resilience against future pricing cycles,” Kaderavek says.
AuKing Managing Director Paul Williams says this new joint venture is an opportunity for the company as it seeks to direct its primary funding towards its Cloncurry and Mkuju uranium projects in Australia and Tanzania, respectively.
“Not only will they bring significant funding to the project but their metallurgical experience and expertise will provide considerable benefits at this stage of the project’s development,” Williams says.
“Further resource discovery and generation is important, but the 2023 Scoping Study previously identified that there’s a viable project at Koongie Project if the metallurgical considerations for this polymetallic resource can be addressed.”
In conjunction, Cobalt Blue is proposing to rebrand and change its name to Core Blue Minerals to better reflect its expanded focus across a broader range of metals.
Kaderavek notes that the Cobalt Blue name no longer reflects the company’s full scope of its business.
“As our technical and project development expertise uncovers new opportunities across base and precious metals, a corporate rebrand marks a key milestone,” the CEO says.
Cobalt Blue says the name change is subject to shareholder approval, which will be sought at an upcoming general meeting in Q2 2025.
The Koongie Park Project, also known as the Halls Creek Project, is located in the Kimberley region of Western Australia. The region is considered prospective for iron ore, mineral sands, rare earths, nickel, copper, cobalt, and gold.
AuKing Mining is an explorer and developer focused on a diverse range of metals across Australia and Tanzania.
Cobalt Blue is a mining and mineral processing company with assets in Western Australia and Broken Hill, New South Wales.
Write to Aaliyah Rogan at Mining.com.au
Images: AuKing Mining
