BHP Group has announced a substantial investment of up to $25 million in the copper exploration projects of Cobre situated in Botswana. The collaboration focuses on the Kitlanya East and West Copper Projects, strategically positioned along the Kalahari Copper Belt in Botswana. This move signifies a significant development in the mining sector and underscores the growing interest in copper exploration in the region.
The agreement allows BHP to acquire a 75% stake in the aforementioned projects, which are strategically located on the northern and southern fringes of the Kalahari Copper Belt. This partnership emerged following Cobre’s successful participation in the 2024 BHP Xplor programme, which also supported a seismic survey at Kitlanya West, laying the groundwork for future exploration activities.
Tim O’Connor, the exploration officer at BHP Group, expressed enthusiasm about the collaboration, highlighting the exploration potential in Botswana and the quality of partnerships fostered through the BHP Xplor programme. The Kitlanya Projects are seen as a promising avenue for the discovery of Tier 1 copper-silver deposits, and BHP is keen to leverage its expertise and resources to drive this venture forward.
As part of the agreement, BHP will initially invest $5 million within a two-year period, with exploration activities slated to commence in April 2025, supported by a planned budget of $7 million. Cobre Botswana will take the helm as the project operator during the earn-in phase, receiving an annual management fee to oversee operations smoothly.
Furthermore, the agreement outlines a potential additional payment of up to $10 million for Cobre upon the declaration of a maiden JORC Compliant Mineral Resource at the Kitlanya sites. In the event that the partnership dissolves during the earn-in phase, BHP stands to receive a net smelter royalty on outputs from the Kitlanya projects, provided a minimum exploration investment threshold is met.
It is important to note that the agreement with BHP pertains specifically to the Kitlanya East and West Copper Projects and does not extend to Cobre’s Ngami and Okavango Copper Projects, which will remain under Cobre’s independent management. This strategic partnership is expected to invigorate exploration efforts with the infusion of capital and expertise from BHP, while affording Cobre the autonomy to retain ownership of its core copper projects.
Adam Wooldridge, the CEO of Cobre, emphasized the significance of the transaction with BHP, characterizing it as a pivotal moment for the company and a testament to the efficacy of BHP’s Xplor programme. The partnership is set to provide the financial backing and support required to execute a technology-driven work programme geared towards unlocking the potential of the Kitlanya East and West Projects.
The upcoming work programme includes deep diamond drilling and active 2D seismic surveys aimed at evaluating key components essential for the formation of Tier 1 copper deposits. Scheduled drilling activities are poised to kick off next month, targeting specific areas identified through the seismic assessments conducted in 2024 at Kitlanya West.
This strategic collaboration between BHP and Cobre not only signifies a significant investment in the copper exploration sector in Botswana but also underscores the importance of fostering partnerships to drive innovation and discovery in the mining industry. With BHP’s financial backing and Cobre’s technical expertise, the Kitlanya Projects are poised to unlock new frontiers in copper exploration and potentially unearth valuable mineral resources in the region.
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