This Microcap Targets Critical Minerals With New Rare Earth Deal

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Wednesday, January 14, 2026

As governments and manufacturers scramble to secure reliable supplies of critical minerals, rare earth elements are becoming a strategic priority across defense, clean energy, and advanced manufacturing. Supply chains remain highly concentrated, pushing exploration and development companies to look for projects that can be advanced quickly while meeting increasingly strict environmental and social standards. Ionic adsorption clay deposits, in particular, have drawn attention for their potential lower-cost and lower-complexity development profile compared to traditional hard-rock mining.

Shares of Chilean Cobalt Corp. (OTCQB: COBA) are moving higher Wednesday after the company announced it has signed a binding earn-in and option agreement to acquire up to 100% of the NeoRe rare earth project in southern Chile. The agreement follows the successful completion of a previously announced letter of intent and establishes a clear, milestone-driven path for Chilean Cobalt to expand its exposure to rare earth elements.

The NeoRe project covers approximately 4,250 hectares in the coastal belt region near Concepción, Chile. It hosts an ionic adsorption clay-style rare earth system enriched with yttrium, neodymium, dysprosium, and terbium, elements considered critical to modern defense systems and advanced manufacturing supply chains. Based on existing geological data, infrastructure access, and historical technical work, the project is viewed as well suited for a low-complexity mining and processing approach.

Under the terms of the agreement, Chilean Cobalt will collaborate with NeoRe’s in-country technical team to carry out a staged exploration and evaluation program. Planned work includes additional drilling, metallurgical optimization and bulk sample testing, the preparation of an independent mineral resource estimate, and completion of a scoping-level technical, economic, and ESG assessment. These steps are designed to progressively de-risk the project and advance it toward potential development readiness.

The companies are targeting a phased development strategy that aims to limit environmental footprint and upfront capital requirements, while pursuing the possibility of near-term commissioning and production scale-up within an estimated 12 to 24 months, subject to technical, regulatory, and market conditions. In parallel, Chilean Cobalt and NeoRe have begun discussions with potential processing groups and offtake partners, with a focus on establishing downstream processing and customer relationships in the United States.

If the agreed technical milestones are successfully completed, Chilean Cobalt will have the option to acquire 100% of NeoRe in exchange for 6,000,000 common shares. A definitive agreement would then set final transaction terms, governance, and a jointly developed sustainability and community engagement framework.

Management noted that NeoRe’s technical team brings significant experience with ionic adsorption clay deposits, supported by historical work that includes soil sampling, analytical studies, and pilot-scale processing that produced a rare earth oxide concentrate.

Shares of COBA were up 10.0% to $2.20 in Wednesday trading.

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