Kobrea Completes Next Payment Under Property Option Agreement for its Western Malargue Copper Projects

Rhea-AI Summary

Kobrea Exploration Corp (CSE: KBX, OTCQB: KBXFF) has completed its next payment under the Option Agreement dated August 14, 2024, for the Western Malargüe Copper Projects in Argentina. The payment included USD$187,500 in cash and 70,000 common shares, representing the first portion of the second payment.

The Option Agreement grants Kobrea the exclusive right to earn a 100% interest in seven projects covering over 733 km² in southwestern Mendoza Province. To acquire full interest, Kobrea must issue 3.5 million common shares and make cash payments totaling USD$6.76 million over five years, subject to a 1.5% net smelter return royalty for the optionors. The issued shares are subject to a four-month and one-day hold period.

Positive

• Option to acquire 100% interest in large copper projects spanning 733 km²
• Successful completion of scheduled payment indicates adherence to acquisition timeline
• Structured payment terms spread over 5 years helps manage cash flow

Negative

• Significant future cash obligations of USD$6.76 million required
• 1.5% net smelter return royalty will impact future mining revenues
• Share issuance of 3.5 million shares may lead to dilution

Vancouver, British Columbia--(Newsfile Corp. - February 18, 2025) - Kobrea Exploration Corp. (CSE: KBX) (FSE: F3I) (OTCQB: KBXFF) ("Kobrea" or the "Company") announces that it has completed the next payment to the optionors under its option agreement dated August 14, 2024 (the "Option Agreement"), pursuant to which the Company has the exclusive right to earn a 100% interest in the seven projects comprising the Western Malargüe Copper Projects, totaling over 733 km² in southwestern Mendoza Province, Argentina (the "Western Malargüe Copper Projects").

The payment consisted of USD$187,500 in cash and the issuance of 70,000 common shares of the Company (the "Shares") and comprises the first portion of the second payment under the Option Agreement. The Shares, and all other common shares of the Company issuable under the Option Agreement, will be subject to a hold period of four months and one day following the date of issuance in accordance with applicable securities laws.

Under the terms of the Option Agreement, the Company can acquire up to a 100% interest in the Western Malargüe Copper Projects, subject to a 1.5% net smelter return royalty in favour of the optionors, by issuing to the optionors an aggregate of 3,500,000 common shares of the Company and making cash payments to the optionors in the aggregate amount of USD$6,760,000 in stages over a five-year period. For more information concerning the Option Agreement and the Western Malargüe Copper Projects, please refer to the Company's press release dated August 19, 2024.

About Kobrea

Kobrea Exploration Corp. is a mineral exploration & development company focused on the acquisition and exploration of base metal projects. Kobrea holds the right to earn a 100% interest in 7 projects totaling over 733 km² in southwestern Mendoza Province, Argentina. The properties are considered highly prospective for porphyry copper and porphyry copper-gold deposits. Numerous porphyry copper targets have been outlined to date exhibiting multi-kilometre hydrothermal alteration footprints, anomalous copper ± gold ± molybdenum geochemistry, quartz stockwork veining, localized hydrothermal breccias and Miocene aged dacitic to dioritic porphyry intrusions. Kobrea also holds a 100% interest in the Upland Copper Project in British Columbia, Canada.

For more information, please consult the Company's filings, available at www.sedarplus.ca.

ON BEHALF OF THE BOARD OF DIRECTORS

Per: "James Hedalen"
James Hedalen
CEO & Director

Contact Information

James Hedalen
CEO & Director
Mobile: (778) 322-9066
Email: James@kobreaexploration.com

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws with respect to the Company, including statements respecting (i) the Western Malargüe Copper Projects and the mineral prospects thereon, and (ii) the Company's performance of its obligations under the Option Agreement, and the exercise of the option thereunder. These forward-looking statements generally are identified by words such as "believe," "project," "aim," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and similar expressions. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release. The forward-looking statements included in this news release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws.

The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241086

FAQ

What is the total size of Kobrea's Western Malargüe Copper Projects in Argentina?

The Western Malargüe Copper Projects cover over 733 km² in southwestern Mendoza Province, Argentina.

How much did Kobrea (KBXFF) pay in its latest payment for the Western Malargüe Projects?

Kobrea paid USD$187,500 in cash and issued 70,000 common shares as the first portion of the second payment.

What are the total payment terms for Kobrea to acquire 100% interest in the Western Malargüe Projects?

Kobrea must issue 3.5 million common shares and make cash payments totaling USD$6.76 million over a five-year period.

What royalty rate will Kobrea (KBXFF) need to pay on the Western Malargüe Copper Projects?

Kobrea will need to pay a 1.5% net smelter return royalty to the optionors.

When was the Option Agreement for the Western Malargüe Copper Projects signed?

The Option Agreement was dated August 14, 2024.