Aim-listed Power Metal Resources on Friday announced a strategic $1-million investment in Chile-focused copper developer Next Minerals, securing a 2.6% interest and exposure to a mine-ready underground project in a Tier 1 mining jurisdiction.

The investment, made through a subscription agreement, will see Power Metal acquire shares and warrants in Next Minerals, alongside a parallel investment by Swift Mining Services, with the two parties committing a combined $3-million for a 7.9% stake.

The funding will support the advancement of the Comahue underground copper project in the Antofagasta region, as well as broader growth initiatives.

Comahue is described as a mine-ready asset, with detailed engineering completed and all key permits secured. The project hosts a Phase 1 mineral resource of 9.91-million tonnes at 0.81% copper and is expected to support an initial seven-year mine life.

Planned Phase 1 operations target processing of 4.7-million tonnes to produce about 40 000 t of copper cathode, with life-of-mine revenue estimated at $495-million and earnings before interest, taxes, depreciation and amortisation of $140-million.

Power Metal CEO Sean Wade said the investment strengthened the company’s exposure to copper in a leading global jurisdiction.

"Chile is the largest and most renowned copper producer globally and Chilean copper is important across the globe. This investment represents Power Metal's strategic entry into a well-established and prestigious market, strengthening the company's position through exposure to highly prospective assets in world-class jurisdictions.

The Comahue mine offers Power Metal shareholders access to a project that can advance to production on an accelerated timescale with all key permits and approvals granted, as well as a large exploration footprint. 

Beyond Comahue, Next Minerals controls more than 14 000 ha in Chile’s coastal copper belt, including five brownfield targets and additional exploration licences, offering potential to expand the resource base and extend mine life.

The project is expected to use conventional mining and processing methods, including sub-level stoping and heap leaching with solvent extraction and electrowinning, with initial production capacity of 6 000 t/y of copper cathode and potential to double as additional resources are developed.