Kobrea Acquires Option on Copper Portfolio in Argentina

Kobrea Exploration has secured an exclusive option agreement to acquire up to a 100% stake in the Western Malargüe copper projects, located in Mendoza Province, Argentina. This extensive portfolio spans 73,334 hectares and includes a range of properties known for their potential in copper mining. The acquisition involves a 1.5% net smelter return royalty (NSR), which Kobrea has the option to repurchase. To complete the acquisition, Kobrea is required to issue up to 3.5 million common shares and make cash payments totaling $6.76 million by 2029. The NSR is divided into five distinct areas, with the option to repurchase each area individually for $1.5 million, or a total of $7.5 million for all five.

The Western Malargüe copper projects are situated in the prolific Neogene Porphyry Belt, renowned for hosting some of the world’s largest copper deposits. The properties are located near significant deposits and close to the city of Malargüe. This portfolio consists of seven mineral properties: Cuprum, El Destino, Elena, El Perdido, Mantos de Cobre, Sofi, and Veronica. These areas are considered highly promising for porphyry copper and copper-gold deposits.

Previous exploration efforts, particularly by VALE Exploration Argentina between 2010 and 2013, identified several surface porphyry targets within these properties. However, no drilling has yet been conducted. The identified targets exhibit signs of extensive hydrothermal alteration and mineralization, associated with Miocene-aged intrusions.

James Hedalen, CEO of Kobrea Exploration, commented on the significance of the agreement, stating, “Securing this option agreement is a major milestone for our company. The Western Malargüe projects are part of an underexplored copper-gold-molybdenum porphyry system within a globally recognized porphyry belt. In 2024, several neighboring projects have received drilling permits for the first time, further validating the potential of this region.”

In addition to this development, Kobrea Exploration has also made progress with its Upland Copper project in British Columbia, Canada. In July 2024, the company obtained exploration permits from the British Columbia Ministry of Energy, Mines, and Low Carbon Innovation for this project, marking another significant step in its expansion efforts.

Kobrea Exploration Corp. is a mineral exploration and development firm dedicated to acquiring and exploring base metal projects across the Americas. The company has secured the right to acquire up to a 100% interest in the Western Malargüe Copper Projects, located in Mendoza Province, Argentina. Additionally, Kobrea owns a 100% stake in the Upland Copper Project situated in British Columbia, Canada. Kobrea Exploration’s Western Malargüe Copper Projects are capitalizing on governmental initiatives aimed at advancing sustainable mining practices to address the challenges posed by the global energy transition.