BHP Group has invested up to USD $25 million in Cobre’s Kitlanya projects in Botswana for copper-silver exploration, focusing on two main projects in the Kalahari Copper Belt. The partnership includes an initial investment of USD $5 million and plans for deep drilling and seismic surveys. Cobre will operate the projects, earning a management fee while BHP aims to secure a 75% stake through future investments.
BHP Group Limited has acquired a stake in Cobre’s Kitlanya projects located in Botswana, providing funding up to USD $25 million for the exploration of copper and silver deposits. This investment will primarily focus on Cobre’s East and West Kitlanya copper projects within the Kalahari Copper Belt.
The investment includes a commitment of USD $5 million within two years and a total exploration budget of USD $7 million, commencing in April. The exploration plan incorporates deep diamond drilling and 2D seismic surveys aimed at assessing the mineral potential for Tier 1 copper deposits, following Cobre’s involvement in BHP’s 2024 Xplor initiative.
BHP will have the opportunity to earn a 75% stake in the Kitlanya projects by investing the full USD $25 million, which includes the initial funding. Meanwhile, Cobre Botswana will operate the projects during this earn-in phase and will receive an annual management fee of no less than USD $250,000.
As of 0920 GMT, BHP shares experienced a decline of 0.91%, trading at 1,901.50p. Reporting by Iain Gilbert at Sharecast.com.
In summary, BHP has strategically invested in Cobre’s Kitlanya projects, focusing on copper-silver exploration with considerable funding. The joint efforts aim to uncover substantial mineral resources, with BHP potentially increasing its stake significantly through further investment. Cobre’s role as an operator is crucial during this phase, ensuring project progress as both companies advance in their exploration endeavors.
Original Source: www.sharecast.com
