BHP to invest $25m in Cobre’s Kitlanya Projects in | Mining News

BHP to invest $25m in Cobre’s Kitlanya Projects in – Mining News

BHP has entered into an earn-in settlement with Cobre to invest up to $25m (A$39.6m) in exploring copper-silver deposits on the Kitlanya initiatives in Botswana.

This investment focuses on Cobre’s Kitlanya East and Kitlanya West copper initiatives on the Kalahari Copper Belt’s basin margins.

The settlement follows Cobre’s participation in the 2024 BHP Xplor programme, which funded a seismic survey at Kitlanya West.

Under the settlement, BHP will present a minimal of $5m within two years, with a deliberate price range of $7m for exploration on the Kitlanya initiatives, beginning in April 2025.

The exploration will embody deep diamond drilling and 2D seismic surveys to consider the mineral system for Tier 1 copper deposits.

Drilling mobilisation is set for April 2025, focusing on areas recognized in the 2024 seismic programme.

BHP may also have an option to earn a 75% curiosity in the Kitlanya initiatives by investing $25m, together with the initial $5m.

Cobre Botswana will function the operator during the earn-in section, receiving an annual management price of no less than $250,000.

The settlement excludes Cobre’s Ngami and Okavango copper initiatives, which Cobre will proceed to develop independently.

Cobre CEO Adam Wooldridge stated: “This vital transaction with BHP is a main second in time for Cobre as a company in addition to a testomony to the success of BHP’s Xplor programme.

“The partnership with BHP will present us with the funding and assist essential to implement a technology-driven work programme designed to uncover the Tier 1 deposits we imagine could also be hosted in our Kitlanya East and West initiatives. Independently, Cobre will proceed advancing its Ngami and Okavango copper initiatives.

“This combined strategy provides exposure to potential Tier 1 discoveries, a development opportunity at Ngami and short-term discoveries on our Okavango project.”

Upon forming a 75:25 three way partnership (JV), BHP could offer Cobre a loan for its share of JV bills till the ultimate investment resolution.

The JV can also be subject to an settlement which specifies that, ought to a participant’s share in the enterprise lower to much less than 10%, the opposite participant can have the fitting to buy that occasion’s curiosity at its honest market worth.

An extra $10m is payable to Cobre if a JORC-compliant mineral useful resource is asserted on the Kitlanya Projects.

If the settlement ends during the earn-in section, with BHP funding no less than $20m, BHP will obtain a 2% web smelter royalty on the Kitlanya Projects. Cobre can buy back 50% of this royalty underneath particular situations.

BHP Group exploration officer Tim O’Connor stated: “We are thrilled to proceed our partnership with one of the BHP Xplor alumni, Cobre Limited, by this settlement. This collaboration displays our pleasure for the exploration potential in Botswana and underscores the high normal of partnerships we see popping out of the BHP Xplor programme.

“The Kitlanya projects in Botswana represent an exciting opportunity to uncover Tier 1 copper-silver deposits, and we are pleased to contribute our expertise and resources to this venture.”

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