Glencore and Madesal Complete Strategic Equity Investment in Chilean Cobalt Corp.

12/03/2025 – 08:55 AM

BERWYN, PA – Chilean Cobalt Corp. (OTCQB:COBA) announced the close of a brokered private placement financing with a wholly‑owned subsidiary of Glencore plc (LSE:GLEN) and Madesal SpA, raising gross proceeds of USD $3,000,000. Under the offering, the company issued 6,000,000 common shares at $0.50 per share. DA Davidson served as lead agent and bookrunner.

The net proceeds are earmarked for field‑level exploration at the La Cobaltera and El Cofre projects, additional district‑wide consolidation targets, expanded ESG due‑diligence programs, and general corporate and working‑capital purposes.

“We are delighted to welcome Glencore and Madesal as strategic investors,” said Duncan T. Blount, Chairman and CEO of Chilean Cobalt. “Their participation validates our asset portfolio and reinforces our vision of positioning Chile as a reliable source of responsibly mined cobalt while growing our copper production in one of the world’s premier mining districts.”

Strategic implications

The influx of capital arrives at a pivotal moment for the cobalt market. Global demand for battery‑grade cobalt is projected to compound at a 7‑8% annual rate through 2030, driven by EV adoption and renewable‑energy storage. Chile’s emerging cobalt belts—anchored by La Cobaltera—offer a low‑cost, geopolitically stable alternative to traditional supply hubs in the Democratic Republic of Congo.

Glencore’s involvement brings deep expertise in critical‑minerals trading, logistics, and downstream processing. Its ability to secure off‑take agreements could accelerate the commercialization pathway for Chilean Cobalt’s future concentrates. Meanwhile, Madesal contributes local construction and engineering capabilities, potentially reducing project‑development timelines and cost overruns associated with remote drilling campaigns in the Atacama region.

From a financial perspective, the $3 million raise represents a modest dilution—approximately 12% of the pre‑placement share base—but the strategic upside may outweigh the dilution cost. The partnership positions Chilean Cobalt to leverage Glencore’s market intelligence for reserve definition, which could pave the way for a definitive feasibility study (DFS) and subsequently a transition from inferred resources to proven and probable reserves as defined under SEC Industry Guide 7.

Environmental, social, and governance (ESG) considerations are increasingly central to upstream financing. The allocation of funds toward ESG diligence underscores Chilean Cobalt’s commitment to meet emerging regulatory standards, particularly Chile’s new “Clean Copper” certification framework and the EU’s Sustainable Finance Disclosure Regulation (SFDR). By integrating ESG metrics early, the company aims to lower future de‑risking premiums and attract a broader class of institutional investors.

Market outlook

Analysts anticipate that cobalt’s price volatility will moderate as new supply sources, including Chile, come online. However, supply‑chain constraints and ESG scrutiny could sustain a pricing premium for “responsibly sourced” material. Chilean Cobalt’s strategic positioning—backed by Glencore’s market reach and Madesal’s operational footprint—places it to capture a meaningful share of the premium market segment.

While the immediate cash infusion is modest, it signals confidence from two heavyweight partners and provides a runway for critical exploration milestones. Successful delineation of high‑grade resources at La Cobaltera and El Cofre could trigger a valuation uplift, especially if the company secures a long‑term offtake agreement with an EV battery manufacturer.

This release does not constitute an offer to sell or a solicitation of an offer to buy securities of Chilean Cobalt in any jurisdiction where such an offer would be unlawful.

About Chilean Cobalt Corp.

Chilean Cobalt Corp. is a U.S.–based critical‑minerals exploration and development firm focused on the La Cobaltera cobalt‑copper project in northern Chile, one of the world’s few primary cobalt districts. The company is committed to creating ecological and social value for stakeholders, economic benefits for Chile and the local communities, and financial returns for shareholders.

Safe Harbor Statement

This release contains forward‑looking statements that involve risks and uncertainties. Actual results may differ materially due to factors such as exploration outcomes, market price fluctuations, regulatory changes, or the ability to integrate strategic partners. The company disclaims any obligation to update these statements.