BHP has invested in Cobre’s Kitlanya projects in Botswana, committing up to USD $25.0 million for copper-silver exploration. The investment primarily targets the East and West Kitlanya copper projects, with plans for extensive drilling and seismic surveys starting in April 2024. BHP can earn a 75% project interest by meeting the investment requirement, while Cobre will manage operations during this phase.
BHP Group Limited has acquired a stake in Australian company Cobre’s Kitlanya projects in Botswana, providing up to USD $25.0 million for copper-silver exploration. This investment targets the East and West Kitlanya copper projects located in the Kalahari Copper Belt, with an immediate commitment of at least USD $5.0 million over the next two years and a dedicated exploration budget of USD $7.0 million starting in April.
The exploration phase will include extensive diamond drilling and 2D seismic surveys to assess the potential of Kitlanya’s mineral resources for Tier 1 copper deposits. This collaborative effort follows Cobre’s involvement in BHP’s 2024 Xplor program, and drilling operations are expected to commence in April, focusing on areas identified through the seismic program.
BHP has the potential to increase its stake to 75% in the Kitlanya projects by fulfilling the total investment of USD $25.0 million, which includes the initial funding. During this earn-in phase, Cobre Botswana will operate the projects and receive an annual management fee of at least USD $250,000.
BHP’s strategic investment in Cobre’s Botswana projects marks a significant step in copper exploration, with the potential for substantial returns. With an initial funding commitment and plans for detailed exploration, the partnership positions both companies to capitalize on promising mineral resources in the Kalahari Copper Belt. Cobre’s role as operator during the earn-in phase ensures ongoing management expertise and a revenue stream from the management fee.
Original Source: www.sharecast.com
