Cobre Takes Control of Sierra Atacama Copper Project
Cobre Limited (ASX: CBE), an Australian copper exploration and development company, has taken control of the Sierra Atacama Copper Project in Chile. The company's wholly-owned subsidiary, Sierra Cobre SpA, now holds a majority ownership stake in the project through amendments to a subscription agreement.
The amendments included a USD $12 million capital raise by Sierra Atacama SpA, which resulted in Sierra Cobre SpA being issued new convertible non-voting preference shares. These shares convert into ordinary shares if Sierra Cobre SpA exercises its 'Control Option' to acquire additional shares from Minera Salara Blanco (MSB) in the Project Companies.
The purchase price for this Control Option is USD $12 million, with a deadline of 31 December 2026. If exercised and preference shares converted, Cobre Chile will hold a 62.86% interest in both Sierra Atacama and Bergbau Wagen SpA.