Cobre Ltd. has supercharged its copper growth strategy by securing majority ownership of the high-grade Sierra Atacama Copper Project in Chile.
The transaction sees Cobre Chile increase its stake via a US$12 million (AU $17.8 million) capital raise executed by project entity Sierra Atacama SpA.
Under the structure, Sierra Atacama issued pro-rata convertible non-voting preference shares to Cobre Chile.
These preference shares will convert into ordinary shares upon Cobre exercising its control option to acquire additional equity from joint venture partner Minera Salara Blanco (MSB).
Upon exercising the option prior to December 31, Cobre Chile will hold a controlling 62.86 per cent interest in both Sierra Atacama SpA and sister entity Bergbau Wagen SpA.
The transaction also incorporates a final option pathway, providing Cobre with a clear mechanism to eventually consolidate 100 per cent ownership of the project assets.
Cobre Executive Chairman Martin Holland said: “Today marks a defining moment in Cobre’s evolution. Securing majority ownership of the world-class Sierra Atacama Copper Mine positions Cobre at the heart of one of the most compelling long-term copper opportunities globally.
“We are increasing our ownership to majority owner at precisely the right time. Global copper demand is entering an unprecedented period of structural growth, while supply is becoming increasingly constrained.”
Holland added that controlling the asset maximises Cobre’s exposure to cash-flow upside as Sierra Atacama ramps up copper cathode output into 2027.
The deal transitions Cobre from an emerging junior explorer into a substantial, production-focused copper developer.
The company plans to leverage its expanded operational footprint to execute targeted exploration programs aimed at unlocking further resources and extending the total mine life of the Sierra Atacama project.
