Flagship Minerals Limited announced a revised option agreement with vendor Sociedad Minera Rajo SpA for the Rosario project, located in the Atacama region 160 kilometres north of Copiapó. The final exercise payment has been cut 50 percent to US$1 million, and the option now runs until October 2028. The company has already paid US$100,000 for the current year, with another US$100,000 due later this month. Payments can be made in cash or shares, and the option can be exercised early, waiving outstanding annual payments. The deal also includes a one percent net smelter royalty that Flagship can buy back at an agreed price.
Flagship managing director Paul Lock said the updated agreement reflects the strength of the relationship built with the vendor. He noted that the company plans to conduct further work at Rosario once key milestones at Isidora have been achieved, ensuring capital is applied where it will generate the most value per dollar.
The Rosario project sits just 10 kilometres north of Codelco's giant El Salvador copper mine and has seen limited modern exploration despite its strategic location. Surface rock-chip sampling has returned assays of up to 8.9 percent copper, with samples exceeding 0.75 percent copper averaging 3.15 percent. Flagship's primary focus remains the Isidora gold project, also in the Atacama region, which holds a JORC-compliant resource of 115.2 million tonnes at 0.56 grams per tonne gold, containing 2.1 million ounces. The company is targeting a low-cost heap-leach operation and working toward a prefeasibility study.
The renegotiation comes amid strong activity in Chile's copper belts. Lundin Mining recently agreed to pay US$215 million for additional interest in the nearby Caserones mine, underlining investor appetite for established assets in the tier-one jurisdiction.
Flagship's portfolio also includes the Whipsaw copper project in British Columbia, Canada, with a massive exploration target of 0.51 to 1.02 billion tonnes. Management said it is considering spinning out the project into a separately listed ASX vehicle, potentially unlocking value and giving existing shareholders a direct stake.