BHP enters a $40 million ‘earn-in’ agreement to explore two copper projects in Botswana, allowing them to potentially acquire 75% ownership. Cobre remains optimistic about tier-1 deposits in the Kitlanya prospects. This move emphasizes BHP’s strategy to diversify its resource portfolio and reinforce its commitment to copper amidst future supply challenges.
BHP, Australia’s leading miner, has initiated a significant venture into Africa by entering into a $40 million ‘earn-in’ agreement aimed at two copper projects in Botswana. This move allows the mining giant to underwrite the exploration initiatives of ASX-listed Cobre at the Kitlanya East and Kitlanya West prospects, located within the Kalahari Copper Belt, with an opportunity to acquire a 75 percent interest in these projects.
The eight-year agreement is pivotal for junior explorer Cobre, which retains a 25 percent ownership of the projects. Cobre’s CEO, Adam Wooldridge, characterized this agreement as a transformative milestone, indicating optimism that the Kitlanya projects may contain “tier-1 deposits.”
Wooldridge emphasized, “The partnership with BHP will provide us with the funding and support necessary to implement a technology-driven work program design to discover the tier 1 deposits we believe may be hosted in our Kitlanya East and West projects.” Additionally, Cobre has other projects, namely Ngami and Okavango, which will be developed independently.
The Kalahari Copper Belt extends approximately 1000 kilometers from central Botswana to northeast Namibia. Sandfire Resources operates the nearby Motheo Mine, enhancing the area’s mining landscape. BHP’s exploration officer, Tim O’Connor, expressed enthusiasm for the collaboration, stating that the Kitlanya projects present an exceptional chance to explore for tier one copper-silver deposits.
Anticipated further exploration at the Kitlanya projects will commence in April. BHP has also pledged an additional $15 million to Cobre, calculated based on the mineral wealth detailed in a Joint Ore Reserves Committee (JORC) report, which is essential for assessing a project’s potential.
BHP’s strategic investment in Botswana’s copper projects represents a significant expansion of its portfolio into Africa, stimulating growth in key mineral resources. The company’s collaboration with Cobre aims to uncover substantial copper-silver deposits and addresses the growing need for these essential materials in emerging technologies. This partnership signifies a noteworthy moment in Botswana’s mining sector, insisting on Cobre’s progression while BHP recalibrates its commodity focus amidst impending supply challenges.
Original Source: www.news.com.au
