Cobre Limited Secures A$40 Million Exploration Partnership with BHP in Botswana
Cobre Limited has entered an Earn-In Agreement with BHP Group to explore copper-silver deposits in Botswana, wherein BHP will invest up to US$25 million for a 75% stake in Cobre’s Kitlanya Projects. The partnership aims to uncover Tier 1 deposits while allowing Cobre to retain control over its other significant projects. A structured work program is set to commence in April 2025.
Cobre Limited (ASX: CBE) has successfully entered into an Earn-In Agreement with BHP Group Ltd (BHP), which will allow BHP to invest up to US$25 million (approximately A$40 million) in exploration expenses for Cobre’s Kitlanya East and Kitlanya West Copper Projects in Botswana. In return, BHP is entitled to earn a 75% stake in these projects located along the Kalahari Copper Belt’s basin margins.
The agreement, which follows Cobre’s active role in the BHP Xplor program, includes a budget of US$7 million (A$11 million) for exploration beginning in April 2025, with the requirement of a minimum of US$5 million funding due within two years. Cobre Botswana will operate the project during the earn-in phase and will receive a management fee of no less than US$250,000 per annum. Furthermore, an additional payment of up to US$10 million will be made upon the declaration of a JORC Compliant Mineral Resource.
The deal excludes Cobre’s flagship Ngami and Okavango Copper Projects, which will continue to advance independently. Both Cobre and BHP are optimistic that the partnership will enable them to locate and develop high-potential Tier 1 copper-silver deposits in the Kitlanya Projects. A technology-driven work program, incorporating deep diamond drilling and a 2D seismic survey, will assess key components necessary for Tier 1 copper deposit formation.
BHP’s Exploration Officer, Tim O’Connor, expressed enthusiasm for the partnership, highlighting the discovery potential in Botswana. Cobre’s CEO, Adam Wooldridge, emphasized the significance of this agreement for Cobre, while chairman Martin Holland acknowledged BHP’s support and the dedication of Cobre’s team throughout the lengthy negotiation process. The exploration program aims to test buried anticline hinge zones and evaluate potential fluid pathways that could contribute to copper-silver mineralization.
In summary, Cobre Limited’s agreement with BHP Group Ltd marks a pivotal moment for the company, facilitating substantial exploration efforts in the Kalahari Copper Belt. BHP’s investment of up to US$25 million, along with their expertise, is poised to bolster Cobre’s capacity to discover Tier 1 copper-silver deposits. This collaboration reflects mutual confidence in the potential of the Kitlanya Projects while allowing Cobre to independently progress its other key projects. Notably, this strategic partnership positions both companies favorably to capitalize on emerging exploration opportunities in Botswana.
Original Source: investingnews.com
