Cobalt Blue Holdings (ASX:COB) has announced a strategic expansion into copper through two joint venture agreements, marking a diversification beyond its traditional cobalt focus. The company has entered into an earn-in joint venture with AuKing Mining (ASX:AKN) for the Koongie Park copper-zinc project in Western Australia and has separately secured an agreement for the Halls Creek copper project.
Koongie Park earn-in agreement
Under the terms of the Koongie Park joint venture, Cobalt Blue can earn up to a 75% stake in the project by investing $2m over three years. The agreement includes:
- An initial 51% interest in the project upon issuing $200,000 worth of COB shares to AuKing.
- An obligation to spend $500,000 by mid-2027 to retain this stake.
- The option to acquire a further 24% by investing an additional $1.5m by mid-2028.
- If AuKing’s stake falls below 10%, it will convert to a 1% net smelter royalty.
Cobalt Blue’s metallurgical expertise is expected to help address processing challenges for Koongie Park’s polymetallic ores, which include copper, zinc, silver, lead, and minor gold.
AuKing’s managing director, Paul Williams, welcomed the deal, saying it allows the company to focus financial resources on other assets, including the Cloncurry gold and Mkuju uranium projects.
Halls Creek project earn-in
Cobalt Blue has also signed an agreement with AuKing for the Halls Creek project, another copper-rich asset located 15km southwest of Halls Creek. The Halls Creek project contains two major deposits, Sandiego and Onedin, with a combined mineral resource of 89,000 tonnes of copper, 69,000 tonnes of lead, 326,000 tonnes of zinc, 9.2 million ounces of silver, and 45,000 ounces of gold.
The company highlighted that 96% of the project’s resources are classified as “indicated,” suggesting strong confidence in the deposit’s quality. The agreement allows Cobalt Blue to leverage its metallurgical expertise to advance the project while ensuring its broader portfolio benefits from commodity diversification.
Rebranding to Core Blue Minerals
Reflecting its broader focus on multiple metals, Cobalt Blue Holdings has proposed a corporate rebrand to Core Blue Minerals Limited. The company stated that while cobalt remains a priority, diversification into copper, zinc, and precious metals will enhance its resilience against commodity price fluctuations. The rebranding is subject to shareholder approval in Q2 2025.
Strategic importance
These joint ventures signal a shift for Cobalt Blue, positioning the company to benefit from growing demand for copper, which is essential for electrification and clean energy projects. The company is also exploring synergies between its projects and Australia’s first cobalt-nickel refinery, which it is developing in Kwinana.
Cobalt Blue CEO Joe Kaderavek described the expansion as a “transformational step” that strengthens the company’s long-term growth strategy. “The Halls Creek project provides an opportunity to unlock significant value while supporting our commitment to battery and industrial metals.”
