Chilean Cobalt completes Phase 2 at NeoRe project, gets $1.5M investment

Chilean Cobalt Corp. (OTCQB: COBA) has completed the Phase 2 work program under its Binding Earn-In and Option Agreement with NeoRe SpA for the NeoRe Rare Earth Project in southern Chile, according to a company statement.

The completion of Phase 2 brings Chilean Cobalt's total net smelter royalty interest in the project to 2%, after earning an initial 1% upon completing Phase 1. The company will now enter Phase 3, which involves negotiating and executing a definitive acquisition agreement for 100% of NeoRe. The existing agreement contemplates consideration of 6,000,000 Chilean Cobalt common shares for the full acquisition, subject to terms and conditions of a definitive agreement.

The Phase 1 and Phase 2 programs included exploration, drilling, geological data collection, metallurgical testing, and economic evaluation, resulting in a scoping-level Mineral Resource Estimate and Preliminary Economic Assessment.

In parallel, Madesal SpA, the controlling shareholder of NeoRe and one of Chilean Cobalt's largest shareholders, made a follow-on strategic investment of $1.5 million into Chilean Cobalt. Madesal previously participated alongside Glencore in investments announced in December 2025 and May 2026.

NeoRe is targeting early 2027 for first mixed rare earth carbonate production from its first Modular Extraction Plant, subject to permitting, construction, financing, and commissioning requirements. The company's production plan anticipates an annualized run-rate of approximately 50 tonnes during 2027, rising to approximately 300 tonnes during 2028, and ultimately 500 to 1,000 tonnes annually through additional modular capacity.

As of September 2026, NeoRe had completed approximately 2,500 meters of drilling across more than 250 drillholes year-to-date and collected over 1,700 surface samples. The company has processed approximately 500 kilograms of ionic clays through its pilot program.

Heavy rare earth elements, including yttrium, dysprosium, and terbium, account for nearly 30% of NeoRe's rare earth element basket by volume, while neodymium and praseodymium account for an additional nearly 25%.

You May Also Be Interested In

• AstraZeneca's camizestrant fails primary endpoint in breast cancer trial
• Fermi founder files proposal seeking independent strategic review
• Corning (GLW) files for up to $2B offering of common shares