Cobre (ASX:CBE) has formalised its move into the Chilean mining sector, announcing the execution of definitive transaction agreements to acquire a majority interest in the Sierra Atacama Copper Project.
Through its subsidiary, Sierra Cobre, the company has established a staged acquisition pathway with Minera Salar Blanco that supersedes the initial term sheet from February.
The comprehensive legal framework allows Cobre to secure up to a 56% interest in the project—an increase from the previously planned 51%—with mechanisms in place for further consolidation.
The transaction involves an initial subscription to reach a 45% stake for an aggregate consideration of US$28 million.
Following this, Cobre holds a call option, exercisable until Dec. 31, to acquire an additional interest for US$10 million, bringing their total holding to 56%.
Beyond ownership percentages, the deal ensures immediate operational control.
Cobre will appoint the project manager and secure board representation, including a Chair with a casting vote.
Located in the Antofagasta region of northern Chile, the project is now under Cobre’s management regarding its business plan, budget, and strategic mine plan.
The definitive agreements also include customary dilution and buy-out mechanics, providing a clear route for Cobre to increase its ownership beyond 56% should counterparties fail to participate in future pro-rata funding.
At the time of reporting, Cobre's share price was $0.16.