Chilean Cobalt Corp. Announces Memorandum of Understanding With Subsidiary of Key Mining Corp, for Long-Term Desalinated Water Supply to Support Responsible Development of La Cobaltera and El Cofre Projects
Rhea-AI Summary
Chilean Cobalt (OTCQB:COBA) signed a non-binding MOU with Gold Express Mines SpA, a Key Mining Corp subsidiary, to negotiate long-term desalinated water supply for the La Cobaltera and El Cofre projects in Chile's Atacama Desert.
Water would come from the proposed Cerro Blanco Water SWRO desalination project, with approved EIS and progress on permits, targeting ~440 L/s capacity to support mining and regional demand.
Positive
- MOU for long-term desalinated water to support La Cobaltera and El Cofre
- Access to proposed Cerro Blanco desalination project with approved Environmental Impact Statement
- Desalination plant designed for approximately 440 liters per second capacity
- Framework outlines take-or-pay and standard Chilean infrastructure water supply terms
- Agreement aims to secure phased water volumes for project development
Negative
- MOU is non-binding with specific commercial terms still under negotiation
- Final agreement subject to remaining regulatory processes and maritime concession renewal
- Execution depends on securing land access rights and project financing
- Board approvals from both Chilean Cobalt and Key Mining Corp still required
- Regulatory approval of maritime concessions only anticipated in 2026
News Market Reaction – COBA
In the Jul 6 session, COBA gained 2.68%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
BERWYN, PA / ACCESS Newswire / July 6, 2026 / Chilean Cobalt Corp. (OTCQB:COBA) ("Chilean Cobalt" or the "Company") announces that it has entered into a Memorandum of Understanding ("MOU") with Gold Express Mines SpA, a subsidiary of Key Mining Corp., a U.S.-based critical minerals company active in Chile, to progress discussions for a long-term desalinated water supply agreement supporting the development of the Company's La Cobaltera and El Cofre projects in northern Chile.
The MOU highlights the strategic importance of securing long-term water infrastructure in Chile's Atacama Desert, one of the driest regions in the world and a top global mining jurisdiction. Reliable access to desalinated seawater is a critical enabling factor for the development of large-scale mining projects in the region and represents a key milestone and strategic objective for the continued responsible development of the Company's cobalt-copper assets.
The contemplated water supply would be sourced from the proposed Cerro Blanco Water seawater reverse osmosis (SWRO) desalination project located in the Huasco coastal area, approximately 30 kilometers from Chilean Cobalt's projects. Importantly, the project has advanced several early development milestones, including an approved Environmental Impact Statement (EIS), and progress on easements, pipeline permitting, and mining concessions supporting project development. Maritime concession applications have been declared admissible, with regulatory approval anticipated in 2026.
The desalination project is expected to have an authorized capacity of approximately 440 liters per second and is designed to serve mining and broader regional water demand. Under the MOU, Chilean Cobalt is expected to secure a long-term allocation of desalinated water under a definitive agreement, with volumes intended to support the phased development of the La Cobaltera and El Cofre projects. The contemplated arrangement is expected to include customary commercial terms for infrastructure-based water supply agreements in Chile, including defined delivery points, take-or-pay structure, and standard allocations of construction, operational, and connection responsibilities between the parties; however, specific terms remain subject to negotiation and agreement in definitive documentation.
The non-binding agreement is structured to provide a framework for long-term supply security, subject to customary conditions precedent, including the completion of remaining regulatory processes, renewal of maritime concessions, securing land access rights, project financing, and execution of definitive documentation. Final execution of any definitive agreement remains subject to approval by the Board of Directors of each Chilean Cobalt and Key Mining Corp.
This press release does not constitute an offer or sale of, or the solicitation of an offer to buy, securities of the Company nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Chilean Cobalt Corp.
Chilean Cobalt Corp. is a US-based and US-listed critical minerals exploration and development company focused on the La Cobaltera and El Cofre cobalt-copper projects in the historic San Juan mining district in northern Chile, one of the world's few primary cobalt districts. Chilean Cobalt is committed to creating ecological and social value for all stakeholders; economic value for Chile and the Chilean communities in which it operates; and financial value for its shareholders.
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. Examples of forward-looking statements, include, among others, statements the Company makes regarding the ability for Cerro Blanco project to engage the necessary project partners and successfully deliver the promised volumes of desalinated water over the periods proposed, the Company's ability to enter into a definitive agreement for the water resources, ability to establish "Proven" or "Probable" Reserves, as defined by the SEC under Regulation S-K subpart 1300, through the completion of a Definitive Feasibility Study for the minerals that the Company seeks to produce and the inherent risks of mining, exploration, development, and processing operations that may negatively impact the business. Statements about the Cerro Blanco project relate to a third‑party project and are subject to risks outside both parties' control. Consequently, our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the Company. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
CONTACTS:
Chilean Cobalt Corp.
Duncan T. Blount
Chairman & CEO
Duncan.Blount@chileancobaltcorp.com
SOURCE: Chilean Cobalt Corp.
View the original press release on ACCESS Newswire