Cobre Limited said its wholly owned Chilean subsidiary, Sierra Cobre SpA, has increased its position in the Sierra Atacama Copper Project in Chile following the issuance of new convertible non-voting preference shares under a previously announced US$12 million capital raising. The shares represent Cobre Chile’s pro-rata entitlement and will convert into ordinary shares once the company exercises a separate Control Option to acquire additional interests from Minera Salara Blanco in the project companies.
The Control Option carries a US$12 million purchase price and must be exercised by December 31, 2026. Upon exercise of the option and conversion of the preference shares, Cobre Chile would hold a 62.86% interest in both Sierra Atacama SpA and Bergbau Wagen SpA, giving it control of the project companies. Cobre also retains a further Final Option that provides a pathway toward consolidating additional ownership interests.
Sierra Atacama is an operating copper asset in Chile, with Cobre targeting a ramp-up in copper cathode production as it expands output from the existing underground mine and SX-EW processing facility. The company has said it is building a larger copper production platform around the asset, while also continuing exploration aimed at identifying additional resources and extending the scale and operating life of the project.
The latest share issuance advances Cobre’s pathway toward majority control of Sierra Atacama, but the company will only obtain the stated 62.86% controlling interest once the Control Option is exercised and the preference shares convert into ordinary shares. The development increases Cobre’s potential exposure to an operating Chilean copper cathode asset as production ramps up, while the separate Final Option provides a further route toward ownership consolidation.
