Kobrea Exploration has signed an exclusive option agreement to acquire up to a 100% interest in the Western Malargüe copper projects in Argentina, covering 73,334 hectares (ha).

The acquisition is subject to a 1.5% net smelter return royalty (NSR), which Kobrea has the option to repurchase.

Kobrea must issue up to 3.5 million common shares and make cash payments totalling $6.76m by 2029.

The properties are divided into five NSR areas, with the option to repurchase each NSR for $1.5m, or $7.5m for all areas.

Located in Mendoza province, the Western Malargüe copper projects are part of the prolific Neogene Porphyry Belt, known for hosting some of the world's largest copper deposits.

These properties are situated near major deposits and the city of Malargüe.

The portfolio includes seven mineral properties: Cuprum, El Destino, Elena, El Perdido, Mantos de Cobre, Sofi and Veronica.

These properties are deemed highly prospective for porphyry copper and copper-gold deposits.

Previous explorations, notably by VALE Exploration Argentina from 2010 to 2013, identified several porphyry targets at the surface.

However, no drilling has been conducted on the properties to date. The identified targets show signs of extensive hydrothermal alteration and mineralisation, and are associated with Miocene-aged intrusions.

Kobrea CEO James Hedalen stated: “The execution of the option agreement represents a major milestone for the company.

“The properties feature underexplored copper-gold-molybdenum porphyry systems within a world-class porphyry belt where, in 2024, several neighbouring projects have had drilling permits granted for the first time.”

In July 2024, Kobrea obtained exploration permits from the British Columbia Ministry of Energy, Mines and Low Carbon Innovation for its Upland Copper project in Canada.