Cobre's agreement with BHP for exploration in Botswana

Cobre Limited (ASX:CBE) has signed a letter of intent to exclusively negotiate with a BHP Group Ltd (BHP) subsidiary for a joint venture agreement over Cobre's Kitlanya West and East Copper Projects in Botswana. The agreement aims to explore for tier 1 copper-silver deposits in the region.

Executive commentary on the Proposed Transaction

Successful negotiation and completion of this significant transaction with BHP, one of the world's leading mining companies, will be a major moment in time for Cobre as a company. Participating in the BHP 2024 Xplor cohort has provided the opportunity to do a belt scale review of the Kalahari Copper Belt, culminating with the collection of seismic data over the prospective northern margin of the belt. The Proposed Transaction with BHP would allow us to fully fund our follow-on exploration programmes and focus on discovering the Tier 1 deposits we believe may be hosted in our Kitlanya West and East Projects. Independently, Cobre will continue advancing its 100% owned in-situ copper recovery development at Ngami - with a scoping study due in early October - along with further drilling at Cobre's 100% owned Okavango project. This combined strategy provides exposure to potential Tier 1 discoveries, a development opportunity at Ngami and short-term discoveries on our Okavango project.

Summary of Cobre's agreement with BHP

Cobre Limited (ASX:CBE) has executed a letter of intent to negotiate exclusively with a BHP subsidiary for a joint venture agreement over Cobre's Kitlanya West and East Copper Projects in Botswana. The agreement aims to explore for tier 1 copper-silver deposits. The Proposed Transaction is subject to approval and execution of formal binding documents and the completion of BHP's due diligence investigations within the exclusivity period. Cobre will continue advancing its 100% owned in-situ copper recovery development at Ngami and further drilling at Cobre's 100% owned Okavango project independently. Shareholders can expect further updates on material developments in respect of the Proposed Transaction.