Cobre Ltd (ASX:CBE) has obtained Kalahari Metals Ltd (KML) in full after acquiring the remaining 49% interest in the entity, securing ownership of a 5,348-square-kilometre tenure in the Kalahari Copper Belt (KCB) of Botswana, the second largest land holding in the area.
The KCB is considered one of the most prospective areas globally for copper exploration by the US Geological Survey, with several companies already developing copper-silver deposits in the region.
“We are extremely pleased to have completed the acquisition of KML to acquire its full ownership,” Cobre executive chair and managing director Martin Holland said.
“This transaction represents a strategic milestone for Cobre to fully exploit the exploration potential of KML, which we believe will continue to unlock considerable value for our shareholders.
“Moving forward, Cobre is well positioned to capitalise on what we believe is one of the most exciting copper districts in the world.”
Details of the transaction
Cobre acquired the remaining (49%) of Kalahari Metals shares in two tranches:
- 24.5% of shares from Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) for cash consideration of £750,000.
- 24.5% of shares in a 12-month call option in return for more than 4.6 million CBE shares at an issue price of $0.29.
CBE also repaid in full existing and outstanding shareholder loans made by Metal Tiger to Kalahari Metals.
“Our recent announcements to the ASX over the past five months indicate that the drilling programme is going extremely well,” Holland continued.
“With the KML transaction now complete, Cobre is ready to take advantage of this incredible opportunity in the Kalahari Copper Belt.
“We aim to unlock the full value of these Botswana assets through a strategic and well-planned exploration programme using our strong Africa-based technical team, and we look forward to continuing to update the market as the program progresses.”
Share issue following shareholder approval
In addition to acquiring KML, Cobre also issued shares to several other entities:
- Mitchell Drilling was issued 2,956,800 shares as part of a drill for equity swap.
- Various parties of Triprop Pty Ltd were issued 447,900 shares, taking CBE’s holding (through subsidiary KML) to 80% as part of the final stages of fully acquiring the company. These shares are subject to a 12-month escrow period from today.
- 166,667 shares were issued to Andrew Sissian as approved by shareholders.
The company advises that total shares on issue following the above allotments is now 228,323,216.
