BHP PARTNERS WITH COBRE TO EXPLORE TIER 1 COPPER-SILVER DEPOSITS IN BOTSWANA

The agreement builds on Cobre’s participation in the 2024 BHP Xplor programme, which previously supported a seismic survey at Kitlanya West.

Botswana Africa Exploration Copper project
Mining Tractor
Mining Tractor


Global mining giant BHP is deepening its footprint in Botswana’s Kalahari Copper Belt through a strategic partnership with Cobre Limited, committing up to $25 million to explore potential Tier 1 copper-silver deposits.

This collaboration, structured as an earn-in agreement, grants BHP the opportunity to acquire a 75% stake in Cobre’s Kitlanya East and Kitlanya West projects by funding exploration efforts. 

The agreement builds on Cobre’s participation in the 2024 BHP Xplor programme, which previously supported a seismic survey at Kitlanya West.

The initial phase of the investment requires BHP to contribute a minimum of $5 million over the next two years, with a $7 million exploration budget set to commence in April 2025. 

The work programme will include deep diamond drilling and 2D seismic surveys aimed at evaluating the potential for large-scale copper mineralisation. Drill mobilisation will target areas identified during the 2024 seismic survey.

Cobre Botswana will operate the projects during the earn-in phase, receiving an annual management fee of at least $250,000. Should BHP proceed to secure a 75% interest by completing the full $25 million investment, the companies will establish a joint venture (JV). As part of the agreement, BHP may offer Cobre a loan to cover its share of JV expenses until a final investment decision is made.

Additionally, Cobre will receive a $10 million payment if a JORC-compliant mineral resource is declared at Kitlanya. If BHP withdraws after funding at least $20 million, it will retain a 2% net smelter royalty, with Cobre having the option to repurchase 50% under agreed terms.

Cobre CEO Adam Wooldridge described the agreement as a transformative moment for the company, stating, “The partnership with BHP will provide us with the funding and support necessary to implement a technology-driven work programme designed to discover the Tier 1 deposits we believe may be hosted in our Kitlanya East and West projects. Independently, Cobre will continue advancing its Ngami and Okavango copper projects.”

BHP’s exploration officer, Tim O’Connor, emphasized the strategic importance of the venture, highlighting Botswana’s potential for world-class copper discoveries. “This collaboration reflects our excitement for the exploration potential in Botswana and underscores the high standard of partnerships we see coming out of the BHP Xplor programme.” He said. 

While the agreement focuses on Kitlanya East and West, Cobre will continue to independently develop its Ngami and Okavango copper projects. This dual-track approach positions Cobre to benefit from both long-term exploration and near-term development opportunities in Botswana’s copper sector.