Cobalt Blue has entered into an earn-in agreement with AuKing Mining to gain up to a 75 per cent interest in the Koongie Park project in Western Australia.
Located in the Kimberley region of WA, Koongie Park hosts two major deposits: Sandiego and Onedin. Together, both deposits hold 89,000 tonnes (t) of copper, 69,000t lead, 326,000t zinc, 9.2 million ounces of silver and 45,000 ounces of gold.
Under the new earn-in agreement, Cobalt Blue will acquire a 51 per cent beneficial interest in Koongie Park by issuing $200,000 in Cobalt Blue shares to AuKing at a $0.072 issue price. The company must meet $500,000 minimum on exploration by June 30 2027 to retain the 51 per cent interest in the project.
Cobalt Blue can then earn to a 75 per cent interest in Koongie Park by acquiring a further $1.5 million of expenditure for the project’s tenements by June 30 2028, spending $2 million on exploration over a three-year period.
The earn-in agreement marks a step in Cobalt Blue’s corporate rebranding, which involves the company diversifying its portfolio beyond cobalt and changing its name to Core Blue Minerals, the latter of which is subject to shareholder approval.
“The Cobalt Blue name no longer reflects the full scope of our business,” Cobalt Blue chief executive officer Joe Kaderavek said.
“While our commitment to delivering a strong battery materials strategy remains unchanged, we are actively expanding our portfolio with high-value projects that have the potential to enhance future earnings.
“The (Koongie Park) project earn-in is a transformational step, broadening our commodity exposure and strengthening our resilience against future pricing cycles. We see immense development potential at (Koongie Park) and are well-positioned to unlock value through complementary initiatives – including the development of Australia’s first cobalt-nickel refinery.”
AuKing managing director Paul Williams said the earn-in agreement is an “excellent opportunity”.
“This is a very good time to introduce Cobalt Blue to the Koongie Park project,” Williams said.
“Not only will they bring significant funding to the project but their metallurgical experience and expertise will provide considerable benefits at this stage of the project’s development.”
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