BHP Group Ltd will invest up to A$40 million in Cobre Limited’s Kitlanya Projects in Botswana to explore Tier 1 copper-silver deposits. This funding enables BHP to earn a 75% interest in exchange for funding US$25 million. Cobre retains control over its Ngami and Okavango projects, and exploration activities are set to commence in April 2025.
BHP Group Ltd is set to invest up to A$40 million in exploration for Tier 1 copper-silver deposits located within Cobre Limited’s Kitlanya Projects in Botswana. This significant investment, resulting from an Earn-In Agreement, allows BHP to gain a 75% interest in the projects after funding US$25 million, which includes an initial commitment of US$5 million to Cobre, within two years.
Cobre will serve as the operator during the earn-in phase and will receive a minimum annual management fee of US$250,000. Should the project reach a joint venture stage, BHP is expected to provide a loan to support Cobre’s portion of expenses until a final investment decision is made. An additional US$10 million may be payable to Cobre upon declaring a maiden JORC Compliant Mineral Resource.
The transaction specifically excludes Cobre’s other significant projects, Ngami and Okavango, which will continue to be developed independently, thereby ensuring Cobre retains full control over these assets. Cobre’s leadership expresses confidence in this collaboration with BHP, leveraging their resources and expertise to uncover substantial discoveries in the Kalahari Copper Belt.
The planned exploration work includes deep diamond drilling and a 2D seismic survey aimed at evaluating crucial aspects of the mineral system necessary for Tier 1 deposit formation. Testing of identified targets at Kitlanya West is projected to begin in April 2025.
Executives from both companies have conveyed their enthusiasm about the partnership and its potential for exploring new opportunities within Botswana’s mineral-rich terrain. Cobre emphasizes a strategic approach that facilitates exposure to potential discoveries while advancing its other operational projects.
In conclusion, BHP’s investment in Cobre’s Kitlanya Projects marks a significant advancement in exploration for Tier 1 copper-silver deposits in Botswana. This partnership not only brings substantial financial backing but also incorporates BHP’s expertise to enhance discovery prospects. Simultaneously, Cobre continues to advance its other projects independently, ensuring diversified growth opportunities.
Original Source: investingnews.com
