BHP Acquires Stake in Cobre’s Kitlanya Projects in Botswana

BHP Group Limited has acquired a stake in Cobre’s Kitlanya projects in Botswana, committing up to USD $25 million for exploration of copper-silver deposits. The investment focuses on Cobre’s East and West Kitlanya projects, with operations beginning in April 2024. BHP may earn a 75% interest through this investment, while Cobre will manage the projects during the earn-in phase.

BHP Group Limited has acquired a stake in Australian company Cobre’s Kitlanya projects, located in Botswana, providing up to USD $25 million for exploring copper-silver deposits. This strategic investment specifically targets Cobre’s East and West Kitlanya copper projects along the Kalahari Copper Belt and entails a minimum initial funding of USD $5 million over the next two years.

The exploration initiative is set to commence in April, with a total budget of USD $7 million. This effort follows Cobre’s recent involvement in BHP’s 2024 Xplor programme and will feature deep diamond drilling and 2D seismic surveys. Both companies aim to assess Kitlanya’s potential for Tier 1 copper deposits, particularly in areas indicated by the 2024 seismic data.

Furthermore, BHP has the opportunity to increase its stake to 75% in the Kitlanya projects by fulfilling the total USD $25 million investment commitment. During the earn-in phase, Cobre Botswana will operate the projects, receiving a minimum annual management fee of USD $250,000. At 0920 GMT, BHP shares experienced a decline of 0.91%, trading at 1,901.50p.

In conclusion, BHP Group’s strategic investment in Cobre’s Kitlanya projects will focus on exploring significant copper-silver deposits, enhancing both firms’ growth potential in Botswana’s mining sector. With a structured funding plan and management arrangement, this collaboration marks a significant step in evaluating the mineral wealth of the Kalahari Copper Belt.

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