BHP Acquires Stake in Cobre’s Kitlanya Projects in Botswana
BHP Group Limited has invested up to USD $25 million in Cobre Limited’s Kitlanya projects in Botswana to explore copper-silver deposits. The investment focuses on two projects within the Kalahari Copper Belt, with immediate plans for exploration starting in April. Cobre will manage operations while BHP retains an option for a larger stake.
BHP Group Limited has acquired a stake in Cobre Limited’s Kitlanya projects located in Botswana, committing up to USD $25 million for copper-silver deposit exploration. This investment primarily targets Cobre’s East and West Kitlanya projects, situated on the outskirts of the Kalahari Copper Belt.
BHP plans to invest a minimum of USD $5 million within the next two years, with an allocated budget of USD $7 million for the initial exploration, commencing in April. The exploration efforts will include deep diamond drilling and 2D seismic surveys to assess the mineral system for potential Tier 1 copper deposits.
Following its participation in BHP’s 2024 Xplor programme, Cobre aims to mobilize drilling in April, focused on areas highlighted during seismic evaluations. Additionally, BHP has the option to secure a 75% interest in the Kitlanya projects by investing the full USD $25 million, which includes the initial investment.
During the earn-in phase, Cobre Botswana will manage the operations and receive a minimum annual management fee of USD $250,000. At present, BHP’s shares have decreased by 0.91%, trading at 1,901.50p.
BHP’s investment in Cobre’s Kitlanya projects illustrates a significant commitment to exploring copper-silver deposits in Botswana, coupled with their strategic partnership to evaluate the region’s mineral potential. The investment structure allows BHP to deepen its involvement through further funding while Cobre retains operational control, emphasizing collaborative exploration efforts. The anticipated drilling activities set to begin in April further highlight the project’s importance in the drive for Tier 1 copper resources.
Original Source: www.sharecast.com
