Kobrea Completes Next Payment Under Property Option Agreement for Its Western Malargüe Copper Projects - Mendoza Province, Argentina

Rhea-AI Summary

Kobrea Exploration (OTCQB: KBXFF) has completed the next payment under its August 14, 2024 option agreement to earn a 100% interest in the seven Western Malargüe Copper Projects totaling 733 km2 in southwestern Mendoza Province, Argentina. The latest payment comprised US$500,000 in cash and 300,000 common shares, which are subject to a four‑month‑and‑one‑day hold period.

Under the Option Agreement, Kobrea may earn up to a 100% interest in the projects, subject to a 1.5% net smelter return royalty in favour of the optionors, by issuing an aggregate 3,500,000 shares and making staged cash payments totalling US$6,760,000 over five years. Kobrea notes an alliance agreement with BHP Metals Exploration Pty Ltd to jointly advance exploration of the Western Malargüe Copper Projects.

Positive

• Next option payment completed with US$500,000 cash and 300,000 shares
• Right to earn 100% interest in seven copper projects totaling 733 km2
• Staged earn-in structure over five years with defined US$6.76M cash and 3.5M-share commitments
• Exploration alliance in place with BHP Metals Exploration Pty Ltd on Western Malargüe

Negative

• Future cash obligations of US$6,760,000 still due over the five-year option term
• Equity dilution from 300,000 new shares now issued under the option agreement
• 1.5% net smelter return royalty will burden any future production from the projects

News Market Reaction – KBXFF

+1.44%

+1.44% Session close to close

In the Aug 13 session, KBXFF gained 1.44%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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Vancouver, British Columbia--(Newsfile Corp. - August 13, 2026) - Kobrea Exploration Corp. (CSE: KBX) (FSE: F3I) (OTCQB: KBXFF) ("Kobrea" or the "Company") announces that it has completed the next payment to the optionors under its option agreement dated August 14, 2024 (the "Option Agreement"), pursuant to which the Company has the exclusive right to earn a 100% interest in the seven projects comprising the Western Malargüe Copper Projects, totaling 733 km² in southwestern Mendoza Province, Argentina (the "Western Malargüe Copper Projects").

The payment consisted of US$500,000 in cash and the issuance of 300,000 common shares of the Company (the "Shares"). The Shares, and all other common shares of the Company issuable under the Option Agreement, will be subject to a hold period of four months and one day following the date of issuance in accordance with applicable securities laws.

Under the terms of the Option Agreement, the Company can acquire up to a 100% interest in the Western Malargüe Copper Projects, subject to a 1.5% net smelter return royalty in favour of the optionors, by issuing to the optionors an aggregate of 3,500,000 common shares of the Company and making cash payments to the optionors in the aggregate amount of USD$6,760,000 in stages over a five-year period. For more information concerning the Option Agreement and the Western Malargüe Copper Projects, please refer to the Company's press release dated August 19, 2024.

About Kobrea

Kobrea Exploration Corp. is a mineral exploration and development company focused on the acquisition and exploration of base metal projects. Kobrea holds the right to earn a 100% interest in 7 projects totaling 733 km² in southwestern Mendoza Province, Argentina. The properties are considered highly prospective for porphyry copper and porphyry copper-gold deposits. Numerous porphyry copper targets have been outlined to date exhibiting multi-kilometre hydrothermal alteration footprints, anomalous copper ± gold ± molybdenum geochemistry, quartz stockwork veining, localized hydrothermal breccias and Pliocene to Miocene aged granodioritic to dioritic porphyry intrusions. Kobrea has entered into an alliance agreement with BHP Metals Exploration Pty Ltd. to jointly advance exploration of the Western Malargüe Copper Projects (see the Company's August 5, 2026 news release for details). Kobrea also holds a 100% interest in the Upland Copper Project in British Columbia, Canada.

For more information, please consult the Company's filings, available at www.sedarplus.ca.

ON BEHALF OF THE BOARD OF DIRECTORS

Per: "James Hedalen"
James Hedalen
CEO & Director

Contact Information

James Hedalen
CEO & Director
Mobile: (778) 322-9066
Email: James@kobreaexploration.com

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of applicable securities laws with respect to the Company, including statements respecting (i) the Western Malargüe Copper Projects, (ii) the Company's performance of its obligations under the Option Agreement, and (iii) the exercise of the option thereunder. These forward-looking statements generally are identified by words such as "believe," "project," "aim," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and similar expressions. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release. The forward-looking statements included in this news release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws.

The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309439

FAQ

What payment did Kobrea Exploration (OTCQB: KBXFF) make in August 2026 under the Western Malargüe option?

Kobrea made a scheduled option payment of US$500,000 in cash and issued 300,000 common shares. According to Kobrea, these shares, like all shares issued under the option, carry a four‑month‑and‑one‑day hold period under applicable securities laws.

What are the key terms of Kobrea Exploration’s Western Malargüe Copper Projects option agreement (KBXFF)?

The option allows Kobrea to earn up to a 100% interest in seven Western Malargüe projects. According to Kobrea, it must issue 3,500,000 shares and pay US$6,760,000 in cash in stages over five years, with a 1.5% NSR royalty to the optionors.

What royalty applies to Kobrea Exploration’s Western Malargüe Copper Projects in Mendoza, Argentina?

The projects are subject to a 1.5% net smelter return (NSR) royalty in favour of the optionors. According to Kobrea, this royalty will apply if production is achieved after the company earns its interest under the staged option payments and share issuances.

How many projects and what area are covered by Kobrea’s Western Malargüe Copper option (KBXFF)?

The option covers seven copper projects totaling 733 km2 in southwestern Mendoza Province, Argentina. According to Kobrea, these Western Malargüe Copper Projects are considered prospective for porphyry copper and porphyry copper-gold deposits with multiple outlined targets.

What is the relationship between Kobrea Exploration and BHP Metals Exploration on the Western Malargüe Copper Projects?

Kobrea has an alliance agreement with BHP Metals Exploration Pty Ltd to jointly advance exploration of the Western Malargüe Copper Projects. According to Kobrea, further details are provided in its August 5, 2026 news release describing the scope of that alliance.

Over what period will Kobrea Exploration (KBXFF) complete its Western Malargüe option payments and share issuances?

The cash and share commitments are scheduled over a five-year period from the August 14, 2024 option date. According to Kobrea, total obligations are US$6,760,000 in cash plus 3,500,000 common shares, paid and issued in stages.