Kobrea Exploration (CSE:KBX) has made the next payment to the optionors under a 2024 option agreement to acquire the Western Malargüe Copper Projects in Argentina.
The payment consisted of US$500,000 ($707,872) cash and 300,000 shares.
Under the terms of the option agreement, Kobrea can acquire a 100% interest in all seven projects, subject to a 1.5% net smelter return royalty, by issuing 3.5 million shares and making cash payments totalling US$6.76 million over a five-year period.
The Western Malargüe Copper Projects span 73,334 hectares in the western Mendoza Province of Argentina.
Earlier this month, Kobrea entered into an alliance agreement with mining giant BHP Group’s (ASX:BHP) wholly owned subsidiary BHP Metals Exploration. The agreement involves both companies advancing exploration across Western Malargüe.
BHP will make an advance one-time cash payment of US$3 million upon starting the agreement. The company will also fund a minimum of US$5 million in expenditure over a two-year period.
As previously reported, Kobrea CEO James Hedalen says the company will continue to operate the projects during this phase, supported by BHP’s technical expertise and financial backing, with the goal of advancing discoveries as efficiently as possible.
“This partnership provides more than funding; it gives us access to BHP’s world-class technical team. With a large portfolio of targets, our focus is on advancing exploration systematically and efficiently, and BHP’s capital and expertise will help us accelerate that process,” Hedalen says.
Kobrea Exploration is a mineral explorer and developer focused on base metal projects in Argentina and Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Kobrea Exploration
