Australia-based copper explorer Cobre has signed a letter of intent with a BHP Group subsidiary to establish a joint venture (JV) focused on exploring copper-silver deposits in Botswana. The partnership aims to negotiate a material earn-in agreement for Cobre’s Kitlanya West and East Copper projects, situated in the Kalahari Copper Belt (KCB).

This collaboration builds on Cobre’s previous engagement in the BHP Xplor program, which included funding a seismic survey for the Kitlanya West project. By teaming up with BHP, Cobre hopes to leverage the mining giant’s extensive exploration expertise and scale, significantly increasing the likelihood of making important discoveries along the basin margin of the KCB.

Importantly, Cobre will retain full ownership of its Ngami and Okavango Copper projects, which will remain outside the scope of this proposed JV. The deal is contingent upon the finalization of formal binding documents and successful completion of BHP’s due diligence during the exclusivity period.

Cobre CEO Adam Wooldridge highlighted the significance of this transaction, stating that collaborating with one of the world’s leading mining companies would represent a pivotal moment for Cobre. He highlighted that joining the BHP 2024 Xplor cohort has enabled the company to carry out a thorough assessment of the Kalahari Copper Belt, resulting in the collection of seismic data from the promising northern margin.

Wooldridge emphasized that this proposed partnership with BHP would enable Cobre to fully fund its subsequent exploration programs and focus on identifying Tier 1 deposits believed to be present in the Kitlanya West and East projects. The Kitlanya West project spans the northern margin of the KCB, while the Kitlanya East project is positioned south of Sandfire Resources’ Motheo Production hub.

Overall, this joint venture represents a strategic move for Cobre, enhancing its exploration capabilities and potential for significant discoveries in a region known for its rich mineral resources. With BHP’s support, Cobre aims to advance its exploration efforts and unlock the potential of its projects in Botswana’s Kalahari Copper Belt.

Cobre is a copper exploration and development company with a strong focus on the Kalahari Copper Belt (KCB) in Botswana, recognized as one of the most promising regions globally for new sedimentary copper discoveries. The company's extensive landholding and high-grade development pipeline position it well to capitalize on the increasing demand for copper, particularly in the electric vehicle and renewable energy sectors.

Cobre aims to leverage its strategic assets to support the future growth of copper, which is essential for the transition to sustainable energy solutions. By actively exploring and developing its projects within the KCB, Cobre is committed to discovering and unlocking the potential of significant copper resources. This proactive approach not only enhances Cobre’s operational footprint but also aligns with the broader industry trends toward decarbonization and clean energy, ensuring the company is well-prepared to meet the evolving needs of the market.