CopperEx Secures Kio Buggy Property Access, Bolstering Exploration Efforts

CopperEx Resources Corp. (TSXV: CUEX) has taken a significant step towards advancing its exploration activities in Chile by signing a formal access agreement with the local Kio Buggy property community. The agreement, announced on February 3, 2025, allows CopperEx to access the property for surface exploration works until June 30, 2026, with an automatic two-year extension if drilling activities commence before that date. This strategic move not only secures CopperEx's access to the property but also demonstrates the company's commitment to maintaining an excellent relationship with the local community.



The Kio Buggy property, located in Northern Chile, is a strategic asset for CopperEx, as it hosts multiple high-quality drill-ready targets. The company has the option to earn 65% interest and a preferred option for an additional 35% with no attached royalty. The property is immediately adjacent to Codelco's Exploradora property, which hosts an estimated resource of 190 to 280 million tonnes grading 0.40% copper. CopperEx's priority is to advance exploration of the Franja del Oro target at Exploradora Norte, which includes the Sorpresa and Agua de la Piedra (ADLP) sub-sectors, and the surrounding favorable host rocks.

The access agreement with the local community is a crucial step for CopperEx, as it enables the company to continue its exploration efforts without interruption. By maintaining a strong relationship with the local community, CopperEx can mitigate potential geopolitical risks, such as community relations and social stability, political instability, regulatory changes, and security and safety concerns. The agreement also helps CopperEx to build a positive reputation with other stakeholders in the region, including local governments and other mining companies, which can facilitate the company's operations and projects.

In addition to the Kio Buggy property, CopperEx owns 100% of its Kio Buggy (Northern Chile) and La Rica (Apurimac province Peru) properties, also with no attached royalties. The company's strategic focus on copper and gold exploration in established mineral belts near producing mines positions it well to capitalize on the growing demand for these metals in the energy transition and other industries.



CopperEx's exploration efforts are supported by a strong financial position, as the company recently arranged a $12.5 million loan and a separate financing to fund its exploration activities. The loan, with a term of ten years and a 3.5% annual interest rate, has no interest accrual or payment during the first two years and a moratorium year in the third year. The financing, in the form of a private placement, raised gross proceeds of up to $1 million through the sale of 5 million units priced at $0.20 each, with each unit containing warrants exercisable at $0.30 per share.

In conclusion, CopperEx's access agreement with the local Kio Buggy property community is a strategic move that secures the company's access to the property and bolsters its exploration efforts. By maintaining a strong relationship with the local community and other stakeholders, CopperEx can mitigate geopolitical risks and build a positive reputation in the region. With a strong financial position and a strategic focus on copper and gold exploration, CopperEx is well-positioned to capitalize on the growing demand for these metals in the energy transition and other industries.

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