Cooper Metals (ASX:CPM) has entered into a binding agreement to acquire an 85% interest in the Colet Copper Project on Negros Island, Philippines.
The project contains a historical estimate of 339 million tonnes (Mt) @ 0.35% copper (Cu) for 1.19 million tonnes of contained copper, reported under the JORC Code 2004.
The estimate comprises 130.9Mt measured @ 0.41% Cu, 152.2Mt indicated at 0.34% Cu, and 55.9Mt inferred @ 0.25% Cu at a 0.2% Cu cut-off grade.
Under the deal, Cooper will acquire 85% of Chalterra, which holds an option to acquire 100% of Colet Mining & Development, the owner of the project.
Cooper will issue 82.2 million consideration shares and 45 million performance rights to Chalterra shareholders. The performance rights convert upon delineation of a JORC Code 2012 mineral resource exceeding 500,000 tonnes of contained copper.
The transaction requires shareholder approval with an independent expert appointed to assess fairness and reasonableness. Chalterra shareholders will be subject to a 12-month voluntary escrow for 73% of share consideration received.
The Colet Project comprises two shallow porphyry copper deposits, Don Jose and A1, discovered in the late 1960s. Previous operators completed more than 124,000m of drilling along with metallurgical, engineering, infrastructure, and environmental baseline studies. A comprehensive technical study was also completed in 2012 by AMEC Minproc evaluating a potential conventional open pit and flotation operation.
Executive Director Tim Armstrong says this body of work provides a “strong starting point” for Cooper.
“Our initial work will focus on validating the historical data, with drilling planned early next year, with the aim of reporting a mineral resource in accordance with the JORC Code 2012,” Armstrong says.
To fund activities, the company received firm commitments for a $2.15 million placement and launched a fully underwritten one-for-four non-renounceable entitlement issue to raise a further $2.7 million at $0.075 per share.
Veritas Securities and Prenzler Group are joint lead managers for the placement, with Veritas Securities underwriting the entitlement issue.
Cooper will assume staged payment obligations to Colet Mining shareholders, including US$250,000 ($358,035) in December 2026, US$250,000 in April 2027, US$10 million on final investment decision (FID), and US$4 million 24 months after FID or commercial production declaration.
Initial work plans include validating historical drilling data, completing geological mapping and surface sampling, conducting confirmation drilling, and advancing community engagement and environmental studies.
Mineralisation reportedly remains open to the south and at depth at Colet, with exploration potential for additional copper and adjacent gold mineralisation identified.
Cooper also intends to continue advancing its Australian projects, including Mt Isa East, Gooroo, and Pyramid.
Colet is located approximately 20km by road from Hinoba-an and 25km from Sipalay City, with the national grid substation at Maricalum approximately 25km away.
Cooper Metals is an explorer focused on copper and gold, with projects in Australia and the Philippines.
Write to Paula Fabe at Mining.com.au
Main image: Cooper Metals
