Chilean Cobalt Corp. (OTCQB:COBA) has completed Phase 2 of its earn-in programme for the NeoRe Rare Earth Project in southern Chile. The milestone allows the company to consider entering Phase 3, which is intended to cover negotiations and execution of a definitive agreement for the proposed acquisition of 100% of NeoRe.
#Acquisition remains subject to a definitive agreement
Phase 3 will involve Chilean Cobalt and NeoRe negotiating, finalising and executing the definitive transaction documents. The existing agreement contemplates consideration of 6,000,000 Chilean Cobalt common shares for 100% ownership of NeoRe, including related intellectual property and data, subject to the terms and conditions of the definitive agreement.
The proposed acquisition has not been completed. Any definitive agreement, if completed, will include customary conditions precedent, termination rights and a jointly developed sustainability and community engagement framework consistent with Chilean regulatory requirements and industry best practices. Further transaction terms also apply.
#Royalty interest rises to 2%
Completion of Phase 1 gave Chilean Cobalt an irrevocable option to receive a 1% net smelter royalty on future project production. Phase 2 added a further 1% NSR royalty, taking the company’s total royalty interest in the project to 2%.
If Chilean Cobalt elects to proceed with the acquisition and the transaction closes, the 2% NSR royalties will be extinguished and will not be registered. The project would therefore not carry those royalties if the transaction is completed.
#Technical work and project coverage
The Phase 1 and Phase 2 programmes included drilling and exploration, geological data collection and modelling, mineral continuity assessment, metallurgical testing, engineering and economic evaluation. The work produced a scoping-level Mineral Resource Estimate and a scoping-level Preliminary Economic Assessment.
The work covers approximately 15% of NeoRe’s total exploration portfolio, which extends across over 20,000 hectares of the broader district. NeoRe is continuing exploration, pilot-scale processing, engineering and permitting activities while the transaction process advances.
#Madesal makes USD $1.5 million investment
Madesal SpA, NeoRe’s controlling shareholder and one of Chilean Cobalt’s largest shareholders, has made a follow-on strategic investment of USD $1.5 million in Chilean Cobalt.
Madesal had previously participated alongside Glencore in investments announced in December 2025 and May 2026. The latest investment was announced as the companies move into the next phase of discussions concerning NeoRe and its project.
#Exploration and pilot processing update
As of September 2026, NeoRe had completed approximately 2,500 meters of drilling across over 250 drillholes year-to-date and had collected over 1,700 surface samples. Recent work has included drilling and geological planning related to the first Modular Extraction Plant, known as MEP-1.
NeoRe had processed approximately 500 kilograms of ionic clays cumulatively through its pilot programme. Its Batch 9 campaign had completed two 30-kilogram desorption stages and impurity removal, while continuing through REE carbonate precipitation.
Work on MEP-1 also includes equipment specifications, supplier engagement, logistics planning and operational readiness. Permitting remains focused on approvals identified as critical to construction.
#Production planning remains conditional
NeoRe is currently targeting early 2027 for first mixed rare earth carbonate (MREC) production from MEP-1, subject to permitting, construction, financing, commissioning and other development requirements.
NeoRe’s current planning anticipates an annualized production run-rate of approximately 50 tonnes of MREC during 2027, followed by an annualized run-rate of approximately 300 tonnes during 2028, and ultimately 500 to 1,000 tonnes annually through additional modular capacity. These planning statements remain subject to the risks and uncertainties identified by Chilean Cobalt, and actual results could differ materially from anticipated outcomes.
#Potential U.S. processing and offtake relationships
Chilean Cobalt and NeoRe are continuing discussions with prospective strategic processing, offtake and downstream partners in the United States. Multiple batches of NeoRe MREC have been supplied to prospective partners for analysis and evaluation as discussions concerning possible future processing and offtake arrangements continue.
The companies have described these activities as part of an effort to develop a Chile-U.S. supply chain for strategically important rare earth elements. Heavy REEs, including yttrium, dysprosium and terbium, account for nearly 30% of NeoRe’s REE basket by volume, while neodymium and praseodymium account for an additional nearly 25%.
#Key Takeaways
- Chilean Cobalt has completed Phase 2 of its earn-in programme for the NeoRe Rare Earth Project in southern Chile.
- The parties are entering Phase 3 negotiations for a proposed acquisition of 100% of NeoRe; the transaction is not yet completed.
- The existing agreement contemplates 6,000,000 Chilean Cobalt common shares, subject to the terms and conditions of a definitive agreement.
- Madesal SpA has invested USD $1.5 million in Chilean Cobalt.
- NeoRe is targeting early 2027 for first MREC production from MEP-1, subject to permitting, construction, financing, commissioning and other development requirements.
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