Cobre Ltd (ASX:CBE) has added as much as 5% today after putting pen to paper on a $40 million earn-in agreement with mining and metals juggernaut BHP Group (ASX:BHP) for funding at its Kitlanya East and West copper projects.
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The copper-silver explorer, helmed by Martin Holland, is trading a 75% interest in the Botswana mines for $40 million (US$25 million) in exploration funding.
The Kitlanya team-up took 17 months to come to fruition, it’s been reported today.
“The partnership will provide us with funding and support to… discover the tier one deposits we believe may be hosted in our Kitlanya East and West projects,” Cobre chief executive Adam Wooldridge told The Financial Review.
Cobre has already been linked to BHP for some time; the explorer participated in the 2024 BHP Xplor program and received funding for seismic surveying in mid-2024.
The mines were described as “exciting” by BHP’s exploration officer Tim O’Connor.
From now, BHP will pay at least a minimum of $5 million through the next two years of exploration, to 2027. Should the mining juggernaut pay the full US$25 million between April 2025 and April 2027, it picks up the 75% interest.
Cobre will soon be anointed the project’s operator – at least during the earn-in phase – and will be handed a management fee of no less than $250,000 a year for works.
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Not included in the deal are Cobre’s Ngami and Okavango mines, also in Botswana.
CBE last traded at 6cps this afternoon after originally spiking at midday.
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