PERTH (miningweekly.com) – ASX-listed Cobre has struck a share purchase deed with fellow-listed Metal Tiger to acquire take full ownership of the Kalahari Metals (KML) exploration vehicle.
Cobre holds a 51% stake inKML, which controls some 8 595 km2 of tenements within the Kalahari copper belt, in Botswana.The tenement holdings is in close proximity to ASX-listed Sandfire’s T3 and A4 copper deposits.
Under the terms of the agreement struck with Metal Tiger, Cobre would initially acquire a further 24.5% interest in KML for £750 000 in cash, taking its interest in the project to 75.5%.
Metal Tiger will grant Cobre a call option for it to acquire the remaining 24.5% of shares in KML, exercisable for either £750 000 in cash or the equivalent in Cobre shares, for a period of 12 months after completion of the initial acquisition.
“This transaction represents a strategic step for Cobre to fully exploit the exploration potential of KML, which we believe will unlock considerable value for our shareholders,” said executive chairperson and MD Martin Holland.
“We plan to begin drilling immediately under the new ownership structure and believe this renewed focus on our project will provide clarity on delineating value for shareholders. In particular, the results received from our initial exploration program in Botswana have been very encouraging, and we look forward to updating shareholders on our ongoing exploration activities.”
Completion of the transaction is subject to shareholder approval, and an independent expert concluding that the transaction was fair and reasonable to Cobre’s shareholders.
The completion of the acquisition is scheduled for early September.