Cobre Limited (ASX:CBE) Secures BHP Agreement and Reports Strong Exploration Results
Corporate Developments
Cobre Limited executed an Earn-In Agreement with BHP Group Ltd, securing up to US$25 million (~A$40m) for exploration of its Kitlanya East and West Copper Projects in Botswana. The company received the first cash call payment of USD2,073,085 from BHP in April 2025. Additionally, an Extraordinary General Meeting approved the second tranche of the capital raise announced in December 2024.
Exploration Highlights
In Botswana, assay results from two exploration holes at the Cosmos Target showed promising copper and silver grades, indicating potential for high-grade discoveries. Infill drilling at the Comet Target progressed ahead of a Mineral Resource Estimate. In Kitlanya West, access clearing and water drilling commenced ahead of the planned Diamond Drill programme under the BHP partnership.
In Australia, Cobre reported successful beneficiation and thermal testing of its High Purity Quartz (HPQ) Project, demonstrating potential for high-purity silica products. An Aboriginal Cultural Heritage Survey was completed, paving the way for further exploration activities.
Executive Comments
CEO Adam Wooldridge stated, “These are great results, with both exploration holes demonstrating potential for a high-grade deposit to the northeast of the previous focus area at Comet. Importantly, we’re seeing anomalous mineralisation occurring over a strike length of more than 4km with further high-grade zones anticipated in the Cosmos target. The highly anomalous silver credits further enhance this developing target.”
Wooldridge also commented on the BHP transaction, “This significant transaction with BHP, one of the world’s leading mining companies, is a major moment for Cobre as a company as well as a testament to the success of BHP’s Xplor programme. 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. This combined strategy provides exposure to potential Tier 1 discoveries, a development opportunity at Ngami and short-term discoveries on our Okavango project.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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