Atalaya paid €2.5 million (US$2.8), and a 1% net smelter return, to Grupo Sacyr for 26 copper and gold exploration permits in southern Spain.
The exploration sites are near a number of existing and legacy mines, including Atalaya’s Riotinto mine, which was restarted in 2016.
"Although the assets are early stage, we note that they are located relatively near to Riotinto which could provide potential integration opportunities within an already established copper mining district in Southern Spain," BMO said.
The company has an exploration budget of up to €2 million for 2022 and plans around 10,000 metres of core drilling.
"Its location, close to the Iberian Pyrite belt where our Riotinto copper mine and other exploration projects are currently advancing, will allow us to carry out aggressive exploration programmes in a cost and time efficient manner," Atalaya chief executive Alberto Lavandeira said.
Atalaya shares were up 2.3% at 403.95p at 10.27 London time.