BHP Group (BHP) and Codelco said Monday they have reached an exploration agreement for the state-owned company's holdings in the Antofagasta Region of Chile.

The deal grants BHP the right to explore the 24,000-hectare Anillo property at its own cost.

Under the terms, BHP may invest up to $40 million in early-stage exploration to assess the site's mineral potential.

Shares of BHP were up 2.5% in recent trading.

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