Chilean Cobalt Corp. has completed the Phase 2 work program at the NeoRe rare earth project in southern Chile, lifting its net smelter royalty interest from 1% to 2% and triggering negotiations for a definitive acquisition agreement.

The completion of the second work stage moves Chilean Cobalt and project operator NeoRe SpA into Phase 3 under an earn-in and option agreement signed in January 2026. The parties intend to negotiate a definitive agreement for 100% ownership of NeoRe, contemplating consideration of 6,000,000 Chilean Cobalt common shares. If the transaction closes, the accumulated 2% net smelter royalty interests will be extinguished.

In parallel, NeoRe controlling shareholder Madesal SpA has injected USD $1.5 million through a follow-on strategic investment into Chilean Cobalt. The funding aligns the parties as development advances across approximately 15% of NeoRe's broader 20,000-hectare district portfolio.

The Phase 1 and Phase 2 programs incorporated drilling, geological data compilation, metallurgical testing, and engineering studies, culminating in a scoping-level Mineral Resource Estimate and Preliminary Economic Assessment. NeoRe has completed roughly 2,500 meters of drilling across more than 250 holes and collected over 1,700 surface samples year-to-date. Pilot plant operations have processed approximately 500 kilograms of ionic clays cumulatively.

Engineering and procurement for the project's first Modular Extraction Plant are advancing alongside critical-path permitting. NeoRe targets early 2027 for first mixed rare earth carbonate production, subject to financing, construction, commissioning, and regulatory approvals.

The planned modular ramp-up anticipates reaching an annualized production run-rate of approximately 50 tonnes of mixed rare earth carbonate during 2027, increasing to roughly 300 tonnes in 2028, and expanding to 500 to 1,000 tonnes annually with additional capacity. Chilean Cobalt and NeoRe are also engaging with prospective downstream partners in the United States, providing batches for evaluation to establish an integrated supply chain. Heavy rare earth elements account for nearly 30% of the project's basket by volume, while light magnetic rare earths represent nearly 25%.

“Completion of Phase 2 represents another major milestone in our relationship with NeoRe and reflects the substantial technical progress achieved since we began the earn-in program in February 2026,” said Duncan T. Blount, Chairman and CEO of Chilean Cobalt. “With the scoping-level MRE and PEA completed, pilot-scale processing demonstrated, and engineering and permitting continuing to progress, we believe we have established a strong foundation for moving into Phase 3 and working towards a definitive agreement. Madesal's additional investment further demonstrates the strong alignment among the parties and our shared commitment to developing NeoRe and building a broader critical minerals platform connecting Chile and the United States.”

“The completion of Phase 2 is an important step in moving NeoRe from technical validation towards development and production,” said Arturo Albornoz, CEO of NeoRe. “Our modular strategy is designed to provide a scalable development pathway, allowing us to target first MREC production in early 2027 and expand capacity as our resource base, processing capabilities, and downstream strategic partner relationships grow. With exploration, pilot processing, engineering, and permitting all moving in parallel, we are focused on execution while continuing to work with Chilean Cobalt to develop long-term processing and offtake relationships in the United States.”

Phase 3 discussions will proceed while NeoRe continues exploration, metallurgical optimization, and engineering activities ahead of its targeted 2027 production schedule.

Read the full announcement: Chilean Cobalt Corp. Completes Phase 2 at Neore Rare Earth Project, Advances Proposed Acquisition, and Secures $1.5 Million Strategic Investment