Cobre Limited exercises US$12M option for Sierra Atacama control
The Chilean subsidiary reports a 62.86 per cent interest and gains the right to appoint three of five directors.
Ines Halvorsen
On Oct. 12, a 62.86 per cent controlling interest in Chile's Sierra Atacama copper operation was announced by Cobre Limited ASXCBE following its subsidiary's exercise of a call option. The company's announcement says the cash consideration payable is approximately US$12 million. The shares are being acquired from Minera Salar Blanco SpA under an amended investment agreement dated June 30, 2026.
Cobre's wholly owned Chilean subsidiary, Sierra Cobre SpA, gains the right to nominate an additional director to the operating companies' boards. Its representation will increase to three of five directors, giving it governance control alongside the larger economic interest.
Cobre shares ASXCBE traded at A$0.34 in Sydney as of 1:24:55 p.m. AEDT on Monday. The company combines the operating Sierra Atacama copper mine in Chile with exploration holdings in Botswana's Kalahari Copper Belt.
The Oct. 12 release describes the purchase price as payable and does not specify its funding source or payment date. It identifies plant expansion, satellite open-pit development and a broader exploration programme as the next phase, without assigning those activities a completion timetable.
"Consolidating control positions us to advance the planned mine expansion, broaden our exploration programme and pursue operational improvements to unlock the project's full potential," Cobre executive chairman Martin Holland said in the release.
Cobre says it will continue working with Minera Salar Blanco on the operation. The announcement gives Cobre responsibility for decisions on the pace of expansion and exploration, but provides no new production target or construction budget for those plans.
Read more: Ivanhoe Mines reports 76,401 tonnes of saleable copper in third quarter
Earlier Terms Set A Further Ownership Path
The July 7 ASX announcement described a separate US$12 million capital raising by Sierra Atacama for the sole purpose of repaying certain outstanding debt. Cobre Chile was to acquire convertible, non-voting preference shares through that investment.
Those preference shares were to convert into ordinary shares upon, and conditional on, exercise of the control option. July's notice estimated a subsequent 63.5 per cent interest in each operating company, subject to the minority shareholder not exercising its pre-emptive rights.
The Oct. 12 release reports a 62.86 per cent interest. It does not explain the difference from July's conditional estimate, so the latest announcement supplies the ownership figure for the control milestone.
The July agreement also established a Final Option to acquire all of Minera Salar Blanco's remaining shares in the operating companies. Its trigger is the earlier of the seller's holding falling to or below 25 per cent, or board approval of the business plan and budget for the 2028 financial year.
That budget approval requires Minera Salar Blanco's favourable vote. The July notice also preserved certain director and voting rights for the seller while it retains shares in the operating companies.
The next dated pricing cutoff in July's terms is Dec. 31, 2027. Exercising the Final Option by then carries a US$68 million price; after that date, the price is the higher of US$68 million and the shares' fair market value.
