Cobre now second largest landholder in Botswana’s Kalahari Copper Belt

By acquiring 100% of Kalahari Metals Limited (KML), Cobre Limited (ASX:CBE) has become the second largest landholder in Botswana’s Kalahari Copper Belt region with acreage now totalling a collective 5,348km2.

The deal, in place since mid-year, saw Cobre acquire just short of 25% of shares in KML from ASX-listed Metal Tiger (ASX:MTR); Metal Tiger’s shares are up 36% on no news in the second hour of Wednesday trade. 

In turn, Metal Tiger has become Cobre’s largest shareholder at 20.58%. 

Cobre operates the Ngami project in Botswana, a copper exploration play targeting the Kalahari Copper Belt. 

What did Cobre pay? 

Cobre paid $1.3m for the last of Metal Tiger’s shares, and also issued 6.6m new shares at 29c to repay a US$1.2m loan. 

The repayment of that loan, the company notes, was prioritised due to a 7% annual compound interest rate. By paying it off at once, the company is hopeful it can avoid similar burden in the future. 

Cobre’s Botswana-based subsidiary, Cobre Kalahari, now officially absorbs the 100% ownership, up from 51%. 

Cobre is also targeting the 100% acquisition of another company, Triporp Pty Ltd, through the newly acquired KML. Currently, KML’s holding in Triporp sits at 80%. Shares wrapped up in the final 20% pickup will be subject to a 12 month escrow starting today. 

Exploration on the radar 

“Moving forward, Cobre is well positioned to capitalise on what we believe is one of the most exciting copper districts in the world,” Cobre chief Martin Holland said. 

“We aim to unlock the full value of these Botswana assets through a strategic and well-planned exploration program using our strong Africa-based technical team.” 

Part of that exploration will be undertaken by Mitchell Drilling, a company familiar with Botswana’s geology and undertaking the work on a ‘drill for equity’ swap at 2.95m shares. 

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