Through its subsidiary Baltum Minería SpA, Chilean Cobalt Corp. will acquire mining concessions in the historic San Juan mining district in northern Chile for $28.3 million, payable in stages, together with royalty and other obligations. The land comprises predominantly brownfield properties with historical cobalt and copper mining activity. The agreement establishes a pathway to consolidate all the past producing La Cobaltera project area adjacent to the company’s existing properties.
The concessions include 1,381 hectares permitted for exploitation and 2,900 hectares permitted for exploration. When combined with Chilean Cobalt’s existing properties at La Cobaltera and El Cofre, the company’s owned and optioned positions will grow to 7,758 hectares for exploitation and 2,900 hectares for exploration.
“Our previous exploration demonstrated that modern methods could delineate mineralization around a historical mine and support an independent resource estimate,” said Duncan T. Blount, chairman and CEO of Chilean Cobalt. “Detailed resource-definition work covered only a limited portion of the district’s extensive mineralized trends, leaving significant potential for high-impact exploration around additional past-producing sites and extensions of known mineralization. The historical tailings add another potential development pathway alongside near-surface oxide mineralization and deeper sulphide targets.
“Metallurgical testing with prospective processing and offtake partners in the USA is helping us assess recovery options and potential commercial products,” he continued. “These activities complement our existing commercial relationships and our objective of developing a responsible Chile-USA supply chain for cobalt, copper and other critical minerals.”
La Cobaltera benefits from road access, nearby power infrastructure, proximity to the Port of Huasco and regional processing facilities, and an experienced mining workforce. Chilean Cobalt said that these advantages support evaluation of phased brownfield development, initially focused on near-surface oxide and transition mineralization, while retaining deeper sulphide potential.
The agreement complements the company’s executed cobalt-copper concentrate offtake agreement with Glencore, a processing letter of intent with U.S. Strategic Metals, and a $375 million project financing letter of interest from U.S. EXIM Bank for the proposed development at La Cobaltera and El Cofre.
Upon exercise, the sellers will receive a 1.5% net smelter return (NSR) royalty covering the optioned concessions and certain existing Baltum La Cobaltera concessions for 99 years from commencement of commercial production. Baltum may repurchase half for $10 million within three years of commercial production, reducing the royalty to 0.75%, and has specified rights of first refusal over all initial royalty sales that are not to an existing NSR beneficiary or for purposes of estate and lineage descendancy transfers.
From the effective date until acquisition or earlier termination, Baltum will pay $25,000 monthly rent and assume specified concession patent fees, security and maintenance responsibilities. Mineral sales during this period are subject to a 20% payment after deductions of specified direct production and selling costs.
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