BHP has acquired a stake in Cobre’s Kitlanya projects in Botswana, investing up to USD $25 million for copper-silver exploration. This includes a minimum of USD $5 million within two years, with operations commencing in April. Under the agreement, Cobre will manage the projects during the earn-in phase, which allows BHP to eventually obtain a 75% interest.
BHP Group Limited has recently acquired a stake in Cobre’s Kitlanya projects located in Botswana, committing up to USD $25 million for the exploration of copper-silver deposits. This investment targets Cobre’s East and West Kitlanya copper projects situated at the edge of the Kalahari Copper Belt, initiating a minimum investment of USD $5 million over the next two years, with a total budget of USD $7 million allocated for exploration activities starting in April.
The forthcoming exploration is poised to follow Cobre’s involvement in BHP’s 2024 Xplor program. Plans include deep diamond drilling and 2D seismic surveys as both companies aim to assess the mineral system at Kitlanya for potential Tier 1 copper deposits. The mobilization for drilling is scheduled for April, focusing on specific areas identified during the 2024 Xplor seismic initiative.
Furthermore, BHP can earn a 75% interest in the Kitlanya projects by investing the full USD $25 million. During this earn-in phase, Cobre Botswana will act as the project operator, receiving an annual management fee of no less than USD $250,000. At the time of reporting, BHP’s shares had experienced a slight decline of 0.91%, trading at 1,901.50 pence.
In summary, BHP’s stake in Cobre’s Botswana projects underscores the strategic interest in enhancing its position in copper exploration. The partnership is set to facilitate significant investment for evaluating the prospect of high-grade copper deposits, with Cobre Botswana managing operations during the earn-in phase. This collaboration highlights BHP’s commitment to expanding its mining initiatives in promising regions.
Original Source: www.sharecast.com
