Don't miss out on the headlines from Mining. Followed categories will be added to My News.
Under the deal, BHP will fund ASX-listed Cobre’s exploration program at the Kitlanya East and Kitlanya West prospects, located in the southern African country’s Kalahari Copper Belt, with an option to secure a 75 per cent stake in the projects.
The eight-year “earn-in” agreement, used by big miners to secure access to early stage and high-potential projects, leaves Cobre with the remaining 25 per cent stake.
Cobre chief executive Adam Wooldridge, in a market update from Monday, said the agreement was a “major moment” for the junior explorer and expressed confidence Kitlanya might hold “tier-1 deposits”.
“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.”
The company also holds the separate Ngami and Okavango copper projects in Botswana and Mr Wooldridge said Cobre would advance these prospects “independently” from BHP.
The Kalahari belt stretches some 1000km from central Botswana into northeast Namibia.
Copper producer Sandfire Resources operates the Motheo Mine close to the Kitlanya tenements.
BHP exploration officer Tim O’Connor said the collaboration with Cobre reflected the mining major’s “excitement” for Botswana.
(20min delay)