Cobre Limited Logo

BHP to Spend up to A$40M to Explore for Tier 1 Copper-Silver Deposits on CBE Tenements in Botswana

Cobre Limited (ASX: CBE, Cobre or Company) is pleased to announce that CBE, and certain wholly owned subsidiaries (also Cobre), have executed an Earn-In Agreement (Transaction) with a wholly owned subsidiary of BHP Group Ltd (BHP) under which BHP will provide up to US$25 million (~A$40m) for exploration expenditure for Cobre's Kitlanya East and Kitlanya West Copper Projects (Kitlanya Projects) and be granted the right to earn a 75% interest in the Kitlanya Projects, located on the northern and southern basin margins respectively of the Kalahari Copper Belt (KCB) in Botswana. The Transaction is a result of Cobre's successful participation in the 2024 BHP Xplor program which also provided funding for the recently completed seismic survey on the Kitlanya West Project (see ASX announcement 22 August 2024).


Highlights

  • The Transaction comprises the following key funding terms (detailed in Schedule 1):
    • A minimum of US$5 million of committed funding to be paid to Cobre within 2 years of the commencement date with a planned budget of US$7m (A$11m) for exploration expenditure for the Kitlanya Projects starting in April 2025; and
    • BHP can earn a 75% interest in the Kitlanya Projects by funding US$25 million (inclusive of the initial US$5 million) for exploration expenditure for the Kitlanya Projects.
  • Cobre Botswana will be appointed operator during the earn-in phase and will be entitled to a management fee of no less than US$250,000 per annum.
  • Upon commencement of the 75:25 joint venture, BHP may provide a loan to Cobre to fund Cobre's portion of joint venture expenditure up until the final investment decision.
  • An additional payment of up to US$10 million, calculated at $5/tonne contained copper, is payable to Cobre upon the declaration of a maiden JORC Compliant Mineral Resource (JORC) at the Kitlanya Projects.
  • If the Transaction is terminated during the Earn-In Phase and BHP has funded at least US$20 million for exploration expenditure, BHP will be entitled to a 2.0% net smelter royalty in respect of the Kitlanya Projects. Cobre may, in certain circumstances, buy back 50% of this royalty for an amount equal to the aggregate of exploration expenditure funded by BHP at the time of electing to exercise the buy-back.
  • The Transaction does not cover Cobre’s flagship Ngami and Okavango Copper Projects which Cobre will continue to operate and advance independently.

The Transaction underscores Cobre's confidence in the potential for its projects to host Tier 1 copper- silver deposits. A partnership with BHP provides the exploration funding, scale and expertise to maximise Cobre's chances of making significant new discoveries on our basin margin exploration ground while retaining 100% ownership of its Ngami and Okavango Copper Projects.

The planned work programme for the initial US$7m includes several deep (~1km) diamond holes combined with active 2D seismic survey designed to assess key components of the Mineral System required for Tier 1 copper deposit formation. Mobilisation for the first phase of drilling, which will test targets identified in the 2024 seismic programme at Kitlanya West, is scheduled for April 2025.

Tim O’Connor, BHP Group Exploration Officer said:

"We are thrilled to continue our partnership with one of the BHP Xplor alumni, Cobre Limited, through this agreement. This collaboration reflects our excitement for the exploration potential in Botswana and underscores the high standard of partnerships we see coming out of the BHP Xplor program. The Kitlanya Projects in Botswana represent an exciting opportunity to uncover Tier 1 copper-silver deposits, and we are pleased to contribute our expertise and resources to this venture.”

Commenting on the Transaction, Adam Wooldridge, Cobre’s Chief Executive Officer, said:

“This significant transaction with BHP, one of the world’s leading mining companies, is a major moment in time for Cobre as a company as well as a testament to the success of BHP’s Xplor programme. The partnership with BHP will provide us with the funding and support necessary to implement a technology-driven work programme designed to discover the Tier 1 deposits we believe may be hosted in our Kitlanya East and West Projects.

Independently, Cobre will continue advancing its Ngami and Okavango copper Projects.This combined strategy provides exposure to potential Tier 1 discoveries, a development opportunity at Ngami and short-term discoveries on our Okavango project.”

Commenting on the transaction, Martin Holland Chairman of the Cobre board, said:

“First and foremost, I would like to extend my gratitude to BHP for their exceptional efforts in the 2024 BHP Xplor program, which aims to foster bold thinking and elevate global exploration to new heights.

I would also like to thank the Cobre Board and team, especially our CEO Adam Wooldridge and Technical Lead Thomas Krebs, for their tireless dedication throughout the year-and-a-half-long process that has led us to this point and for their efforts in successfully finalising this transaction with BHP.”

Figure 1. Locality map illustrating the position of Cobre’s project areas. Green licenses are relevant tothe Transaction, dark grey licenses will be run, and are owned, independently by Cobre.

Geology, Mineralisation and Exploration Target

Mineralisation in the KCB is sediment-hosted and structurally controlled, with copper-silver mineralisation most frequently hosted along the redox contact between the basal units of the reduced marine sedimentary rocks of the D’Kar Formation and oxidised clastic sedimentary red bed units of the Kuke and Ngwako Pan Formations and the underlying volcanosedimentary Kgwebe Formation. Of particular interest for Tier 1 deposits are the tight, upright folds which offer ideal trap-sites for upgrading of copper-silver mineralisation and formation of large deposits. These folds are typically bounded by district-scale shears (often with evidence of copper anomalism) which would provide the necessary plumbing architecture for movement of copper-rich fluids during basin formation and subsequent closure and deformation. A schematic illustration of the preserved fold hinge model is illustrated in Figure 2. The upcoming exploration programme will focus on testing these buried anticline hinge zones along with assessing primary basin architecture, source rocks, fluid pathways and trap-site mechanisms.

Figure 2: Schematic illustrating of the target model compared with typical settings for known KCB deposits.


Click here for the full ASX Release

This article includes content from Cobre Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

Cobre Limited

Cobre Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Cobre Limited (ASX:CBE)

Cobre Limited

Keep reading...Show less

Unlocking Copper and Critical Minerals for a Low-carbon Future

Nine Mile Metals

Nine Mile samples up to 18.27% Cu at Wedge

NINE MILE METALS ANNOUNCES XRF HIGH-GRADE RESULTS UP TO 18.27% COPPER FROM THE UPCOMING DRILL AREA AT THE WEDGE PROJECT, BATHURST, NEW BRUNSWICK

Nine Mile Metals Ltd. has released XRF (X-ray fluorescence) results for volcanogenic massive sulphide (VMS) mineralization grab samples collected from the coming drill area on the Wedge VMS project in the world-famous Bathurst mining camp (BMC) in New Brunswick, Canada. Discovered in 1956, Cominco operated the Wedge mine between 1962 and 1968, producing 1.5 million tonnes of predominantly copper ore. At the time of closure (head pillar collapsed), only the upper portion of the deposit was mined. The expectation is that the lower 60 per cent plus remains untouched based upon recent drill testing and extends at depth with the 3-D modelling.

Keep reading...Show less
Empire Metals

Empire Metals Limited Announces Appointment of Marketing Manager

Empire Metals Limited (LON:EEE), the AIM-quoted and OTCQX-traded resource exploration and development company, is pleased to announce the appointment of a Marketing Manager, a key role which, along with Empire's partnership with titanium marketing experts, TiPMC Consulting, strengthens the in-house marketing and product development team and supports the rapid advancement of the Pitfield Titanium Project ("Pitfield" or the "Project") in Western Australia.

Key Points

Keep reading...Show less
Empire Metals

Empire Metals Limited Announces Director/PDMR Shareholding

Empire Metals Limited (LON:EEE)(OTCQX:EPMLF),the AIM-quoted resource exploration and development company, announces that it was notified today that Mr Shaun Bunn, Managing Director, purchased 40,000 ordinary shares of no par value in the share capital of the Company ("Ordinary Shares") at a price of 36.25 pence each.

Following this purchase, Mr Bunn's total beneficial ownership in the Company is 2,251,111 Ordinary Shares representing 0.32% of the Company's issued share capital.

Keep reading...Show less
Empire Metals

Empire Metals Limited Announces Company Update

The Board of Empire Metals Limited (LON:EEE)(OTCQX:EPMLF), the resource exploration and development company, would like to respond to recent sharp decline in the Company's share price and would like to clarify that there has been no material change to the Company's operational or financial position to account for this movement. The Board remains confident in the Company's strategy, the progress being made at the Pitfield Titanium Project and the long-term value proposition for shareholders.

Empire continues to advance technical and commercial workstreams to unlock the Project's full potential and will update the market in due course on further developments. The Company is well funded to achieve upcoming milestones, underpinned by £4.5m fundraising in Q2 2025 and as at 30 June 2025 the Company's cash position was £6.3m.

Keep reading...Show less
High-Grade Copper-Gold Extensions at Nugent

High-Grade Copper-Gold Extensions at Nugent

Hillgrove Resources Limited (Hillgrove) (ASX:HGO) is pleased to provide the following drilling update from the Kanmantoo Copper Mine. The Nugent drilling program from the 1010 Diamond Drill Site and the 1040 Nugent Drill Site has been completed and delivered excellent results which improve the understanding of the Nugent orebody in preparation for first production. These results have increased the Gold endowment and improved knowledge of the Copper-Gold distribution.

Keep reading...Show less
Empire Metals

Empire Metals Limited Announces Director/PDMR Shareholding

Empire Metals Limited / LON:EEE / Sector: Natural Resources - Empire Metals Limited ("Empire" or the "Company")

Director Dealing

Keep reading...Show less
Cobre Limited

Cobre Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News