BHP takes up stake in Cobre's Botswana projects

(Sharecast News) - Mining giant BHP has taken a stake in Australian outfit Cobre's Kitlanya projects in Botswana in exchange for as much as USD $25.0m in funding for the exploration of copper-silver deposits. BHP's investment focuses on Cobre's East and West Kitlanya copper projects on the margins of the Kalahari Copper Belt and will see it put in a minimum of USD $5.0m within two years, with a budget of USD $7.0m for exploration of the Kitlanya projects, beginning in April.

The exploration, which comes hot on the heels of Cobre's participation in BHP's 2024 Xplor programme, will include deep diamond drilling and 2D seismic surveys as the pair look to evaluate Kitlanya's mineral system for Tier 1 copper deposits. Drilling mobilisation was set for April, targeting areas identified in the 2024 Xplor seismic programme.

BHP will also have the option to earn a 75% interest in the Kitlanya projects by investing $25.0m, including the initial $5.0m, while Cobre Botswana will serve as the operator during the earn-in phase, receiving an annual management fee of no less than USD $250,000.

As of 0920 GMT, BHP shares were down 0.91% at 1,901.50p.







Reporting by Iain Gilbert at Sharecast.com