BHP is looking to Botswana for its next copper hit, executing a letter of intent with Cobre that could unlock the Kitlanya West and East copper projects on the Kalahari copper belt.
The proposed transaction, which would involve a earn-in joint venture, builds on Cobre’s participation in the BHP Xplor program, which funded a seismic survey on the Kitlanya West project earlier this year.
Other companies that participated in the 2024 Xplor program include East Star Resources, Equivest Minerals, Hamelin Gold, Longreach Mineral and Pallas Resources.
“Successful negotiation and completion of this significant transaction with BHP, one of the world’s leading mining companies, will be a major moment in time for Cobre as a company,” Cobre chief executive officer Adam Wooldridge said.
“Participating in the BHP 2024 Xplor cohort has provided the opportunity to do a belt-scale review of the Kalahari copper belt, culminating with the collection of seismic data over the prospective northern margin of the belt.
“The proposed transaction with BHP would allow us to fully fund our follow-on exploration programs and focus on discovering the Tier 1 deposits we believe may be hosted in our Kitlanya West and East projects.”
Wooldridge said Cobre will retain one hundred per cent ownership of its in-situ copper recovery development at Ngami alongside its Okavango copper project, which are excluded from the proposed agreement.
The company plans to advance its development at Ngami, with a scoping study expected in early October, and continue drilling at Okavango.
The final details of the transaction are subject to binding agreements and due diligence.
The BHP Xplor program is a unique six-month global accelerator program designed to expedite exploration efforts for early-stage opportunities seeking critical minerals crucial for the energy transition.
The program combines aspects of venture capital and early-stage accelerators, providing participating companies with financial grants (up to $US500,000), mentorship from industry experts, and comprehensive training across business, technical, and operational functions.
BHP said this collaborative approach aims to rapidly mature the geological concepts of participants, positioning them for investment or potential long-term partnerships with the Tier 1 miner.
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