Cobre Secures Landmark $40M Exploration Deal with BHP for Botswana Copper Projects

Key Highlights:

• BHP to invest up to A$40M in exploration at Cobre’s Kitlanya East and Kitlanya West Copper Projects in Botswana.
• Earn-In Agreement grants BHP a 75% interest in the Kitlanya Projects upon full funding of US$25M (~A$40M).
• Cobre to receive a minimum of US$5M upfront, with a US$7M exploration program commencing in April 2025.
• Potential additional US$10M payment to Cobre upon a maiden JORC Compliant Mineral Resource declaration.
• Major exploration program includes deep diamond drilling (~1km) and a 2D seismic survey to identify Tier 1 copper-silver deposits.

Cobre Strikes Transformational Exploration Deal with BHP

In a significant milestone, Cobre Limited (ASX: CBE) has signed a landmark earn-in agreement with mining giant BHP for the exploration of its Kitlanya East and Kitlanya West Copper Projects in Botswana’s Kalahari Copper Belt (KCB).

This deal marks a pivotal moment for Cobre, securing A$40 million in funding to unlock the full potential of its copper-silver assets. Under the agreement, BHP will fund up to US$25 million (~A$40 million) in exploration expenditures, with the right to earn a 75% stake in the Kitlanya Projects.

Cobre will retain full ownership of its Ngami and Okavango Copper Projects, continuing to advance them independently.

BHP’s Investment: A Major Endorsement for Cobre’s Projects

BHP’s tier-1 backing is a testament to the high prospectivity of Cobre’s assets in Botswana. Tim O’Connor, BHP’s Group Exploration Officer, highlighted the importance of the deal:

“This collaboration reflects our excitement for the exploration potential in Botswana and underscores the high standard of partnerships emerging from the BHP Xplor program. The Kitlanya Projects present an exciting opportunity to uncover Tier 1 copper-silver deposits.”

This partnership follows Cobre’s successful participation in the 2024 BHP Xplor program, which also funded a seismic survey at Kitlanya West.

Exploration Program Kicks Off in April 2025

The initial US$7M work program will commence in April 2025, focusing on:

• Deep diamond drilling (~1km) to test key mineralization zones.
• Active 2D seismic survey to analyze copper-silver system structures.
• Targeting Tier 1 copper-silver deposit formations in basin margin exploration zones.

Cobre’s Botswana-based subsidiary will act as operator during the earn-in phase, earning a minimum annual management fee of US$250,000.

Strategic Financial and Operational Terms

• BHP’s Commitment: A minimum US$5 million payment within two years to kickstart exploration.
• Joint Venture Structure: Once BHP completes its US$25M funding, the project transitions into a 75:25 joint venture.
• Additional Cash Bonus: Cobre may receive up to US$10M upon the declaration of a JORC-compliant Mineral Resource.
• BHP Royalty Clause: If BHP exits after investing at least US$20M, it retains a 2% net smelter royalty.

Why This Deal Matters for Investors

1. Financial De-Risking & Increased Upside

BHP’s funding removes significant financial risk for Cobre while allowing the company to retain exposure to potential major discoveries.

2. Accelerated Tier 1 Copper Exploration

The Kalahari Copper Belt is one of the world’s most promising copper-silver regions, and this deal enables cutting-edge technology-driven exploration.

3. Cobre Retains 100% of Its Other Key Projects

The agreement excludes Cobre’s Ngami and Okavango Copper Projects, allowing independent development and future strategic options.

4. High-Profile Industry Validation

BHP’s involvement adds credibility to Cobre’s exploration potential, making it more attractive for future investors and strategic partners.

What’s Next for Cobre?

• April 2025: Mobilization for drilling at Kitlanya West.
• Mid-2025: Execution of further seismic surveys and drilling.
• 2026+: Potential maiden JORC resource declaration and joint venture formation.

With BHP’s backing and a fully funded exploration program, Cobre is now in prime position to deliver a significant copper-silver discovery in Botswana.

Final Thoughts

Cobre’s strategic partnership with BHP marks a transformational deal that could reshape the company’s future. By securing A$40M in funding, this agreement provides the capital, expertise, and scale needed to unlock Tier 1 copper discoveries.

As global copper demand surges, Cobre is now positioned as a major emerging player in the Kalahari Copper Belt. Investors can expect high-impact exploration results in the coming months.