The company can earn an 80% interest in the project, which contains an area of historical high-grade cobalt workings located 130 kilometres northwest of the capital, Santiago.
Uranium Equities can earn the 80% interest by paying up to $200,000 to the vendors and spending $500,000 in exploration expenditure, within three years after exercising the option.
The proposed acquisition represents Uranium Equities’ first step towards diversifying and expanding its energy metals exposure.
The Plateado Cobalt Project complements the company’s extensive uranium portfolio in the world-class Alligator Rivers Uranium Province on the Northern Territory.
The project in Chile comprises 12 contiguous tenement applications for total area under application of 36 square kilometres in the province of Petorca.
Uranium Equities will undertake reconnaissance exploration activities over the project during an exclusive 90-day due diligence period.
Historical mining at Plateado commenced in 1899 and periodically operated in the 1930’s to produce high-grade cobalt.
The workings are indicative of artisanal-scale mining. However, there are no indications that the area has been subsequently explored using modern exploration techniques.
Recent rock-chip sampling has returned grades of up to 0.89% cobalt from samples containing cobaltite and erythrite.
Uranium Equities plans to undertake initial reconnaissance exploration activities including more extensive rock-chip sampling and mapping as well as a soil geochemical survey over the tenements.
The company’s share price doubled since the start of 2017, last trading at $0.011.