Kobrea Exploration and BHP Metals have entered into an agreement to jointly explore copper opportunities in the Western Malargüe Mining District in Mendoza Province, Argentina.
The agreement also includes Kobrea’s 100%-owned subsidiary, Kobrea Exploraciones Argentina.
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The newly formed alliance aims to undertake advanced and generative exploration across Kobrea’s projects in the region.
BHP will make an upfront payment of $3m to Kobrea to support project development. Over an initial two-year period, referred to as the Project Generation Phase, BHP will fund at least $5m in exploration activities. This phase may be extended under the agreement’s terms.
During this initial stage, Kobrea will operate the exploration activities. BHP has the option to designate up to four projects during the Project Generation Phase.
For each selected project, BHP can earn a 75% interest by investing a minimum of $40m over a subsequent eight-year period.
Once a project earn-in is achieved, a joint venture will be established, granting BHP a 75% stake and Kobrea 25%. An oversight committee comprising representatives from both companies will manage exploration throughout the project phases.
Kobrea Exploration CEO James Hedalen said: “Our team has assembled an exceptional district-scale land package and identified numerous compelling porphyry copper targets across the project portfolio.
“We retain meaningful long-term exposure in any project advanced to a joint venture, providing our shareholders with significant upside as the district is explored and developed.”
The collaboration combines Kobrea’s local geological insights and established presence with BHP’s international technical expertise and financial strength to develop multiple copper targets within the district.
Kobrea will maintain operational control during the initial exploration phase, with BHP retaining the option to take over operations later.
In August 2024, Kobrea signed an exclusive option agreement to acquire up to a 100% interest in the Western Malargüe copper projects, covering 73,334 hectares.
