Power Metal Resources plc has invested US$1 million (£700,000) for 2.6% in Next Minerals S.A., which is developing the Comahue underground copper mine in Antofagasta, Chile.
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Power Metal made the investment through a subscription for 65,142 ordinary shares and 65,142 warrants, valid for three years, in Next.
The company said that project has a phase I mineral resource estimate of 9.91 million tonnes at 0.81% copper, with a seven-year life of mine processing 4.7 Mt, to produce 40,000t of fine copper cathode.
Power Metal has made the investment alongside Swift Mining Services Ltd, for a combined $3m investment and 7.9% interest
Chief executive officer Sean Wade added: “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.”
The company noted that Chile-based Next aimed to develop medium-scale copper operations.
Its mining property hosts “five brownfield exploration targets and 10,000 hectare of adjacent, unexplored mining licences”.
Swift Mining operates in a similar “incubator model” as Power Metal and focuses on “undervalued copper and gold assets in emerging markets”.