Australian-listed Cooper Metals Ltd. has agreed to acquire an 85% interest in a company holding an option over the Colet Copper Project in Negros Occidental, with plans to validate historical resource estimates and resume exploration drilling next year.
In an announcement dated Oct. 12, Cooper said it had signed a binding share sale agreement with the shareholders of Chalterra Pty. Ltd., which holds an option to acquire full ownership of Colet Mining & Development Corp., the Philippine company that owns the mining claims.
The Colet project comprises the Don Jose and A1 porphyry copper deposits in southwestern Negros Occidental. Previous operators completed more than 124,000 meters of drilling and technical studies, including a comprehensive assessment in 2012 of a potential open-pit mining and flotation operation.
Cooper Executive Director Tim Armstrong said the historical work provided a foundation for further exploration, although the company would first need to verify the existing data.
“Our initial work will focus on validating the historical data, with drilling planned early next year, with the aim of reporting a Mineral Resource in accordance with the JORC Code 2012,” Armstrong said.
The company also plans to assess the potential to extend known copper mineralization and explore for gold within the project area.
Historical estimate requires validation
The Colet project has a historical estimate of 339 million metric tons of ore grading 0.35 percent copper, equivalent to about 1.19 million metric tons of contained copper, based on a 0.2 percent cutoff grade.
The estimate was prepared by Mining Associates for a former project operator and reported in 2012 under the JORC Code 2004, an Australian standard for reporting mineral exploration results and resources.
Cooper cautioned that the estimate has not been independently validated and does not comply with the current JORC Code 2012 requirements. It should not be treated as a current mineral resource estimate.
The company plans to recover and validate the historical drilling database, conduct geological mapping and surface sampling, undertake confirmation and twin drilling, and carry out community engagement and environmental studies.
The deposits have been explored since the 1960s. A technical study completed in 2012 by AMEC Minproc, now part of Wood Group, evaluated a potential conventional open-pit mine and flotation plant to produce copper concentrate. No ore reserves were estimated.
Cooper said the project also offered potential for additional copper mineralization and gold, although further exploration would be needed to establish the extent and economic viability of any additional deposits.
Acquisition subject to approvals
Under the proposed transaction, Cooper will acquire 85 percent of Chalterra, while the existing shareholders will retain a 15 percent interest. Their retained stake will be free-carried until Cooper declares a positive final investment decision on the project.
The consideration includes 82.2 million Cooper shares and 45 million performance rights. The performance rights will convert into ordinary shares if the project establishes a JORC 2012-compliant mineral resource containing more than 500,000 metric tons of copper at a 0.2 percent cutoff grade.
The transaction remains subject to due diligence, regulatory and other required approvals, and Cooper shareholder approval. An independent expert will assess whether the transaction is fair and reasonable.
Cooper will also assume staged payment obligations under a separate agreement relating to the acquisition of Colet Mining. These include cash payments of $250,000 in December 2026 and April 2027, followed by a $10 million payment upon a final investment decision and exercise of the option to acquire Colet Mining.
Further payments would be required after the final investment decision and upon commercial production, including production-linked payments and a 1.5 percent net smelter return royalty. Cooper may buy back 0.75 percentage point of the royalty for A$3 million.
Capital raising to fund exploration
Cooper has secured commitments for a A$2.15 million share placement and launched a fully underwritten, one-for-four nonrenounceable entitlement offer expected to raise a further A$2.7 million.
The capital raising, totaling about A$4.85 million before costs, will fund the acquisition and initial work on Colet, while also supporting exploration at the company's existing Australian projects.
Cooper's other assets include the Mt. Isa East copper-gold project in Queensland, the Gooroo copper-gold project in Western Australia and the Pyramid gold project in Queensland.
The company said it would begin site access, community engagement and environmental work in Negros Island while preparing for mapping, surface sampling and reverse-circulation drilling.
The acquisition is expected to expand Cooper's copper and gold portfolio in the Philippines, but completion and the conversion of the historical estimate into a current mineral resource remain contingent on further work and the satisfaction of transaction conditions.
