Power Metal Resources PLC has made a strategic investment of $1 million to acquire a 2.6% stake in Next Minerals S.A., a Chile-focused copper developer.
The deal provides exposure to the Comahue underground copper project, which has completed detailed engineering and secured key permits. The project hosts a Phase 1 Mineral Resource of 9.91 million tonnes at 0.81% copper.
Comahue is expected to operate over a seven-year mine life, with projected revenues of around $495 million and EBITDA of $140 million.
Next Minerals also holds additional exploration assets with further upside potential. Power Metal’s investment forms part of a $3 million combined funding round alongside Swift Mining Services Ltd., giving the partners a 7.9% total interest.
The investment is aimed at advancing Next Minerals’ development plans and positioning the company to benefit from strong copper market fundamentals.
Highlights:
· US$1 million investment via a subscription agreement into Next Minerals for 2.6% interest
· Exposure to the mine-ready Comahue underground copper mine in the coastal copper belt in Antofagasta, Chile
o Detailed engineering completed with the necessary permits acquired
o Phase 1 Mineral Resource Estimate: 9.91 million tonnes (“Mt”) at 0.81% copper[1]
o 7 year Life of Mine (“LOM”) for phase 1, processing 4.7 Mt to produce 40,000 tonnes of fine copper cathode
o LOM revenue phase 1: US$495 million
o LOM EBITDA phase 1: US$140 million
o Next Minerals’ additional mining properties include five brownfield targets totaling 3,000 ha and 10,000 ha of adjacent, unexplored mining licences, with major world‑class deposits flanking the tenure – providing potential to materially expand the Company’s resource base.
· Power Metal is undertaking this investment alongside Swift Mining Services Ltd. (“Swift”).
Sean Wade, CEO of Power Metal Resources, commented:
“This strategic investment in Next Minerals represents an important step in building further, meaningful exposure to copper within our portfolio, on a large scale in a premium copper jurisdiction. Chile is the largest and most renowned copper producer globally and Chilean copper is important across the globe. This investment represents Power Metal’s strategic entry into a well‑established and prestigious market, strengthening the company’s position through exposure to highly prospective assets in world‑class jurisdictions.
“The Comahue mine offers Power Metal shareholders access to a project that can advance to production on an accelerated timescale with all key permits and approvals granted, as well as a large exploration footprint, and in a time where we are seeing an attractive copper market. It is also encouraging to enter this investment with Swift, who equally see the significant potential in the company and the project. I look forward to updating shareholders further on this investment as and when appropriate.”
