Chilean Cobalt Corp. announced the completion of Phase 2 of its earn-in agreement with NeoRe SpA regarding the NeoRe Rare Earth Project in southern Chile. The Phase 1 and Phase 2 work programs included exploration, drilling, geological modeling, metallurgical testing, and economic evaluation. These efforts resulted in the development of a scoping-level Mineral Resource Estimate and a Preliminary Economic Assessment.
As a result of completing Phase 2, Chilean Cobalt has earned an additional 1% net smelter royalty on the project, bringing its total royalty interest to 2%. The company now has the option to proceed to Phase 3, which involves negotiating a definitive agreement for the acquisition of 100% of NeoRe. The proposed consideration for the acquisition is 6,000,000 shares of Chilean Cobalt common stock.
In parallel with the project milestones, the company secured a strategic investment of $1.5 million from Madesal SpA, the controlling shareholder of NeoRe. Madesal is also a significant shareholder of Chilean Cobalt. The gross proceeds from this investment are intended to fund district consolidation opportunities, exploration, early ESG-related work, and general corporate purposes.
NeoRe continues to advance its development strategy, which targets early 2027 for first mixed rare earth carbonate production from its Modular Extraction Plant. The company plans to ramp up production to an annualized run-rate of approximately 50 tonnes in 2027, increasing to 300 tonnes in 2028 and 500 to 1,000 tonnes annually thereafter. NeoRe has processed approximately 500 kilograms of ionic clays through its pilot program and is currently engaging with prospective strategic partners in the United States.
