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

Rhea-AI Summary

Kobrea Exploration Corp. (OTCQB: KBXFF) has completed its latest payment under the Option Agreement for the Western Malargüe Copper Projects in Argentina. The payment includes $350,000 in cash and 105,000 common shares, representing the first portion of the third payment.

The Option Agreement, dated August 14, 2024, grants Kobrea the exclusive right to earn 100% interest in seven projects covering 733 km² in southwestern Mendoza Province. To acquire full interest, Kobrea must issue 3.5 million common shares and make cash payments totaling USD$6.76 million over five years, subject to a 1.5% net smelter return royalty to the optionors.

Positive

• None.

Negative

• Significant remaining financial obligations totaling USD$6.76 million
• 1.5% net smelter return royalty obligation to optionors
• Share dilution through issuance of 3.5 million common shares

News Market Reaction

+3.68%

1 alert

+3.68% News Effect

On the day this news was published, KBXFF gained 3.68%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - August 13, 2025) - 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 USD$350,000 in cash and the issuance of 105,000 common shares of the Company (the "Shares") and comprises the first portion of the third payment under the Option Agreement. 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 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/262296

FAQ

What is the latest payment made by Kobrea (KBXFF) for the Western Malargüe Copper Projects?

Kobrea made a payment consisting of USD$350,000 in cash and 105,000 common shares as part of the third payment under the Option Agreement.

What are the total payment terms for Kobrea's Western Malargüe Copper Projects acquisition?

Kobrea must issue 3.5 million common shares and make cash payments totaling USD$6.76 million over five years to acquire 100% interest, subject to a 1.5% net smelter return royalty.

How large is the Western Malargüe Copper Projects property in Argentina?

The Western Malargüe Copper Projects consists of seven projects totaling 733 square kilometers in southwestern Mendoza Province, Argentina.

What is the royalty obligation for Kobrea (KBXFF) under the Western Malargüe option agreement?

The option agreement includes a 1.5% net smelter return royalty in favor of the optionors.

When did Kobrea sign the Option Agreement for the Western Malargüe Copper Projects?

Kobrea signed the Option Agreement on August 14, 2024 for the Western Malargüe Copper Projects.