en.Wedoany.com Reported - Norfolk Metals (ASX:NFL) has announced the acquisition of a 100% interest in the Ciclón copper project in Chile for a total consideration of $50 million, comprising $45 million in cash and $5 million in shares, and plans to initiate a financing of up to A$120 million. The transaction involves the acquisition of a permitted, high-grade, advanced copper project.
The Ciclón project is located in Chile's resource-rich Domeyko Cordillera metallogenic belt, which hosts giant copper deposits such as Collahuasi, Chuquicamata, and La Escondida. The project has a non-JORC compliant foreign resource estimate of 10.1 million tonnes at a copper grade of 2.97%. The project benefits from a strategic location, situated just 55 km northeast of Codelco's large El Salvador copper mine and 50 km east of Minera Las Cenizas' Franke copper mine.
The acquisition funding will be supported by an institutional financing of at least A$100 million. New board member Andrew Bray and incoming Executive Chairman Anthony McClure have committed to a combined A$10 million investment, a move seen as deeply aligning with management interests. McClure stated that given the infrastructure and regional dynamics near the project, Ciclón, as an advanced, high-grade, and permitted project, offers potential near-term production optionality.
In addition to the core project, Norfolk will acquire a portfolio of early-stage exploration assets in Chile, including additional claims near Ciclón. The deal comes during a period of strong copper prices, with market expectations requiring more mines to support the expansion of data centers, artificial intelligence, and new power grids. Copper prices have risen to over $14,000 per tonne, approaching the all-time high of over $14,500 per tonne.
The Ciclón project comprises 55 mining concessions and 3 pending applications, covering the Ciclón and Exploradora historic mining belts. Small-scale mining in the area began in 1860, with modern exploration activities initiated in 1979 by Riochilex, which drilled 8 diamond drill holes (totaling approximately 2,400 meters). Exploration was restarted in 2017 under Minería Activa, involving geological mapping over 2,500 hectares, underground mapping of historic workings, and targeted trenching and channel sampling to test surface continuity.
Norfolk believes there are multiple high-priority targets near the existing deposit that could support a large-scale operation, such as the La Encantada porphyry target located directly east of the Ciclón-Exploradora belt. Current owners of the Ciclón mining concessions include Eco Earth Elements, Compañía Minera Fénix, and Minera Mirasol Chile Limitada. McClure stated that the exploration potential presented is encouraging and represents an opportunity to reposition the company, expressing confidence that there is scope not only to significantly expand the current high-grade epithermal resource but also that the adjacent La Encantada porphyry prospect offers compelling exploration opportunities.
The transaction is expected to be completed in August 2026. Upon completion, site work will commence to accelerate exploration and drilling for both epithermal and porphyry targets. McClure stated that the company is ideally positioned to unlock significant value for Norfolk shareholders. Over the next 24 months, mapping, modeling, geochemical, and geophysical programs are planned along the strike and depth extensions of the Ciclón-Exploradora belt. Petra Capital is acting as Lead Manager for the public offering, with Beacon Securities and JP Equity Partners acting as Co-Managers.
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