BHP has gained the right to acquire a 75% stake in Cobre’s Botswana projects, following Cobre’s selection in the Xplor program. The deal includes $5 million in funding within two years and a $7 million exploration budget. Cobre’s CEO, Adam Woolridge, highlights the partnership’s importance for discovering potential deposits.
BHP, the leading mining conglomerate, has secured the right to acquire a 75% stake in Cobre’s projects located in Botswana. This significant transaction stems from Cobre’s selection in BHP’s Xplor program, initiated in January of the previous year, which provided Cobre with $500,000 aimed at enhancing exploration activities in its Kalahari copper projects in Botswana.
The agreement stipulates that Cobre will receive a minimum of $5 million in committed funding within two years of the deal’s commencement, alongside a planned budget allocation of $7 million earmarked for exploration expenditures, starting next month. This financial backing is intended to bolster Cobre’s initiatives in the region.
Adam Woolridge, the Chief Executive of Cobre, emphasized the importance of this partnership, stating that it will afford the company the necessary funding and support to enact a technologically advanced work program. This program aims to uncover what they believe to be significant Tier 1 deposits within their Kitlanya East and West projects, showcasing their optimism regarding the potential of their Botswana ventures.
In conclusion, BHP’s acquisition of a 75% stake in Cobre’s Botswana projects marks a strategic partnership with substantial financial commitment. The collaboration is expected to enhance exploration capabilities, driven by a technology-focused work program. Such investments reflect both companies’ confidence in discovering valuable mineral deposits in the Kalahari region.
Original Source: www.zawya.com
