Chilean Cobalt Corp. (OTCQB:COBA) announced the completion of Phase 2 exploration work on the NeoRe Rare Earth Project, located in southern Chile. Upon completion, the company earned a 2% net smelter royalty interest in the project.
The Phase 1 and 2 programs encompassed exploration, drilling, geological data collection, metallurgical testing, engineering studies and economic evaluation, culminating in a scoping-level Mineral Resource Estimate and Preliminary Economic Assessment.
As of September 2026, approximately 2,500 meters of drilling had been completed across more than 250 drillholes, along with over 1,700 surface samples collected. A pilot program processed roughly 500 kilograms of ionic clays.
The project's rare earth element basket is dominated by heavy rare earths — including yttrium, dysprosium and terbium — which account for nearly 30% by volume, while neodymium and praseodymium make up approximately 25%.
Madesal SpA, the controlling shareholder of NeoRe and a major shareholder of Chilean Cobalt, previously invested $1.5 million into Chilean Cobalt, with additional investments announced in December 2025 and May 2026.
Under the existing agreement, Chilean Cobalt is set to acquire 100% ownership of the project during Phase 3 through the issuance of 6,000,000 common shares.
Target production began at the end of 2026 with the first mixed rare earth carbonate output, contingent on permitting, construction, financing and commissioning milestones. Annualized production is projected at approximately 50 tonnes in 2027, rising to about 300 tonnes in 2028, ultimately reaching 500 to 1,000 tonnes annually.
