BERWYN, PA / ACCESS Newswire / November 4, 2026 / Chilean Cobalt Corp. (OTCQB:COBA) ("Chilean Cobalt" or the "Company") is pleased to announce that its wholly owned Chilean subsidiary, Baltum Minería SpA ("Baltum"), signed a definitive option agreement to acquire mining concessions in the historic San Juan mining district in northern Chile comprising predominately brownfield properties with historical cobalt and copper mining activity.
The agreement establishes a pathway to consolidate substantially all of the past-producing La Cobaltera project area adjacent to the Company's existing properties. This brings together historical mining areas, prospective exploration areas, and historical tailings piles into the Company's portfolio and broader exploration and development strategy. The option covers approximately 1,381 hectares of exploitation concessions and 2,900 hectares of exploration concessions. Together with Chilean Cobalt's existing properties at La Cobaltera and El Cofre, the combined owned and optioned position comprises approximately 7,758 hectares of exploitation concessions and 2,900 hectares of exploration concessions.
At La Cobaltera, the agreement would expand the Company's existing exploitation concession position from 3,007 hectares to approximately 4,388 hectares, alongside the 2,900 hectares of optioned exploration concessions. Chilean Cobalt separately owns 3,370 hectares of exploitation concessions at El Cofre, a northeast extension of La Cobaltera. Acquisition of title to the optioned concessions remains subject to exercise of the option and payment of the required installments.
"This agreement represents a major milestone in our long-standing strategy to consolidate La Cobaltera and evaluate its potential as an integrated cobalt-copper district, an objective in place since Chilean Cobalt was founded in 2017," said Duncan T. Blount, Chairman and Chief Executive Officer of Chilean Cobalt. "Our previous exploration demonstrated that modern methods could delineate mineralization around a historical mine and support an independent resource estimate. Detailed resource-definition work covered only a limited portion of the district's extensive mineralized trends, leaving significant potential for high-impact exploration around additional past-producing sites and extensions of known mineralization."
Mr. Blount continued, "The historical tailings add another potential development pathway alongside near-surface oxide mineralization and deeper sulphide targets. Metallurgical testing with prospective processing and offtake partners in the United States is helping us assess recovery options and potential commercial products. These activities complement our existing commercial relationships and our objective of developing a responsible Chile-US supply chain for cobalt, copper, and other critical minerals."
The tailings testing program is evaluating metal recovery, processing requirements, and potential product suitability. Successful recovery could provide feed from previously mined material while supporting rehabilitation of legacy mine waste. Further characterization and testing are required to establish quantity, recoverable metal content, and economic potential. This work complements the Company's participation in a CORFO-supported consortium evaluating cobalt recovery from historical mine waste.
Small-scale mining activity took place at multiple sites on the optioned properties earlier in 2026. The properties have since been vacated, and no mining operations are currently underway. Consolidation would allow historical workings and mineralized trends to be evaluated across property boundaries, with greater flexibility to assess shared infrastructure, processing alternatives, and development sequencing.
Chilean Cobalt's 2018-2019 exploration program at La Cobaltera included historical records review, geological mapping, surface and underground sampling, geophysical surveys, diamond drilling, and preliminary metallurgical testing across both its existing properties and the optioned properties. Independent NI 43-101 technical reports prepared by SRK Consulting in 2019 documented 96 drillholes totaling approximately 21,943 meters completed during 2018-2019. Approximately 14,022 meters in 68 holes targeted cobalt-rich vein systems at Rosa Amelia, while approximately 7,921 meters in 28 holes tested additional copper-cobalt targets across the district.
Exploration identified approximately 12 kilometers of cobalt-rich vein trends and more than 20 kilometers of copper-rich vein trends across the broader project area. Priority exploration areas included Rosa Amelia, Farellon, Despreciada, Prospera, Quebradita, Marengo, Las Ligas, Los Yoles, and Emilia.
The exploration program culminated in SRK Consulting preparing an initial NI 43-101 mineral resource estimate for the Rosa Amelia area in November 2019. Drawing on drilling, underground channel sampling, and geological interpretation, SRK developed three-dimensional vein wireframes and resource block models incorporating oxide, transition, and sulphide mineralization. Chilean Cobalt views this work as validation that modern exploration can define and delineate mineralization around the district's past-producing mines, providing a foundation for evaluating additional historical mining areas.
Detailed resource-definition work focused on approximately 2.5 kilometers of vein systems at Rosa Amelia, Rosa Amelia Menor, and Farellon - a limited portion of the broader mineralized trends identified across the project area. Additional reconnaissance drilling tested other targets, but substantial portions of these trends remain subject to further exploration. With the modeled Rosa Amelia-area veins also remaining open at depth, Chilean Cobalt believes the district offers significant potential for exploration through extensions of known mineralization and systematic testing of additional historical mine sites.
Building on this technical foundation, Chilean Cobalt has also initiated artificial intelligence and machine learning ("AI/ML") work with Mineral Forecast and MinersAI. The programs integrate historical mine records, the Company's exploration results, and geological and geophysical datasets to help validate historical interpretations, refine known targets, and identify additional prospective areas. Combined with field mapping, sampling, and advanced hyperspectral imaging capabilities, this approach supports prioritization across La Cobaltera and El Cofre. AI/ML targets require field verification and drilling.
SRK also conducted conceptual scoping-level technical and economic evaluations using synthetic models across eight target areas to support exploration prioritization and corporate planning. These exercises helped identify potential vein extensions and priorities for further drilling. They incorporated assumed grades and extrapolations into untested areas and are separate from the Rosa Amelia mineral resource estimate; they do not constitute mineral resources, establish economic viability, or represent a completed project-wide preliminary economic assessment.
The historical findings relate to work completed in 2018-2019 across the project area and broader district, rather than new results or findings exclusively from the optioned concessions. Mapped vein lengths alone do not establish continuous economic mineralization. Further drilling, metallurgical testing, and technical studies are required to assess additional resources and potential development.
La Cobaltera benefits from road access, nearby power infrastructure, proximity to the Port of Huasco and regional processing facilities, and an experienced mining workforce. These advantages support evaluation of phased brownfield development, initially focused on near-surface oxide and transition mineralization, while retaining deeper sulphide potential.
The agreement complements Chilean Cobalt's executed cobalt-copper concentrate offtake agreement with Glencore, processing letter of intent with US Strategic Metals, and USD $375 million project financing letter of interest from US EXIM Bank for proposed development at La Cobaltera and El Cofre. The EXIM letter is not a financing commitment; financing remains subject to due diligence, approvals, and definitive agreements.
The option provides for fixed consideration of $28.3 million, payable in stages, together with royalty and other obligations. This includes $500,000 previously paid under the May 2026 Terms of Reference and $300,000 paid at signing. A further $1.5 million is payable along with reimbursement of agreed upon mining concession patent fees payable no later than December 30, 2026, the date of which will constitute the agreement's effective date. $6 million is due within 120 days thereafter, subject to two optional 30-day extensions for $150,000 each. $10 million is due within one year of the effective date and no later than December 30, 2027, followed by $10 million upon exercise within two years of the effective date and no later than December 30, 2028.
Upon exercise, the sellers will receive a 1.5% net smelter return ("NSR") royalty covering the optioned concessions and certain existing Baltum La Cobaltera concessions for 99 years from commencement of commercial production. Baltum may repurchase half for $10 million within three years of commercial production, reducing the royalty to 0.75%, and has specified rights of first refusal over all initial royalty sales that are not to an existing NSR beneficiary or for purposes of estate and lineage descendancy transfers.
From the effective date until acquisition or earlier termination, Baltum will pay $25,000 monthly rent and assume specified concession patent fees, security, and maintenance responsibilities. Mineral sales during this period are subject to a 20% payment after deductions of specified direct production and selling costs.
This press release does not constitute an offer or sale of, or the solicitation of an offer to buy, securities of the Company nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Chilean Cobalt Corp.
Chilean Cobalt Corp. is a US-based critical minerals exploration and development company focused on the La Cobaltera / El Cofre cobalt-copper project in the historic San Juan mining district, one of the world's few primary cobalt districts. Chilean Cobalt is committed to creating ecological and social value for all stakeholders; economic value for Chile and the Chilean communities in which it operates; and financial value for its shareholders.
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. Examples of forward-looking statements, include, among others, statements the Company makes regarding its ability to incorporate any acquired claims into its next phase of exploration, ability to leverage the optioned areas toward the establishment of a Chile-US supply chain for cobalt, copper and other critical minerals, ability to prove that modern exploration techniques can provide the foundation for the evaluation of additional historical mining areas, ability to prove that the extension of known mineralization will yield similar outcomes in adjacent areas, ability to utilize the infrastructure advantages to support brownfield development, ability to establish "Proven" or "Probable" Reserves, as defined by the SEC under Item 1300 of Regulation S-K (Subpart 229.1300), through the completion of a Definitive Feasibility Study for the minerals that the Company seeks to produce and the inherent risks of mining, exploration, development, and processing operations that may negatively impact the business. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the Company. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
CONTACTS:
Chilean Cobalt Corp.
Duncan T. Blount
Chairman & CEO
Duncan.Blount@chileancobaltcorp.com
SOURCE: Chilean Cobalt Corp.
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