Chilean Cobalt signs earn-in and option for Neore Rare Earth Project, Chile

Chilean Cobalt Corp. [OTCQB: COBA] reported that it has entered into a binding earn-in and option agreement with NeoRe SpA, a privately-held Chilean company following the successful execution of the previously-announced Letter of Intent.

This agreement defines a clear, phased pathway under which Chilean Cobalt may advance technical work, de-risk the project, and subject to achieving specific milestones, acquire up to 100% ownership of NeoRe and its rare earth element (REE) project located in southern Chile.

The project comprises approximately 4,250 hectares within the coastal belt region near Concepción, Chile and hosts an ionic adsorption clay-style REE system enriched with yttrium, neodymium, dysprosium, and terbium – elements critical to defense and advanced manufacturing supply chains.

Based on geological characteristics, infrastructure access, and prior technical work completed by NeoRe, the project is considered well-suited to a low-complexity mining and processing approach. The parties intend to pursue a phased development strategy, designed to limit environmental footprint and upfront capital intensity, while targeting the potential for near-term commissioning and production scale-up within approximately 12 to 24 months, subject to technical, regulatory, and market conditions.

Under the agreement, Chilean Cobalt will collaborate with NeoRe’s in-country technical team to execute a staged exploration and evaluation plan.

Planned work includes additional exploration drilling, metallurgical optimization and bulk sample testing, preparation and publication of an independent Mineral Resource Estimate and completion of a scoping-level technical, economic, and ESG assessment

These milestones are designed to systematically evaluate the Project’s scale, metallurgy, and economic potential, while advancing it towards development readiness.

Upon successful completion of the agreed technical and evaluation milestones, Chilean Cobalt will have the option to acquire 100% of NeoRe in exchange for 6,000,000 common shares of Chilean Cobalt. If the option is exercised, the parties will enter into a definitive agreement setting forth final transaction terms, governance, and customary conditions.

In parallel with technical advancement, Chilean Cobalt and NeoRe have initiated engagement with potential processing groups, offtake partners, and other strategic counterparties, with a focus on establishing downstream processing and customer relationships in the United States. These discussions are expected to continue throughout the earn-in period, and are intended to support future development, funding, and commercialization pathways.

NeoRe’s technical team brings substantial experience in the evaluation and development of ionic adsorption clay deposits, with a strong emphasis on environmental stewardship and community engagement.

Historical work completed prior to the agreement include regional soil sampling programs, analytical studies, and pilot-scale downstream processing that successfully produced a rare earth oxide concentrate, providing an important technical foundation for the next phase of work.

“We are pleased to progress from a non-binding Letter of Intent to a binding earn-in and option agreement with a clearly defined path forward,” said Duncan T. Blount, Chairman and CEO of Chilean Cobalt. “With a strong local technical team, encouraging historical results, and a structured milestone-driven work program, we believe this Project represents a compelling opportunity to expand our exposure to rare earth elements while maintaining disciplined capital allocation and a responsible development approach.”

The definitive acquisition agreement, if completed, will include customary conditions precedent, termination rights, and a jointly developed sustainability and community engagement framework, covering the full development of the Project, consistent with industry best practices and Chilean regulatory expectations.

Chilean Cobalt is a US-based critical minerals exploration and development company focused on the La Cobaltera cobalt-copper project in northern Chile, one of the world’s few primary cobalt districts.