Cobre (ASX:CBE) announced a significant development in its exploration activities, revealing a signed letter of intent with BHP Group (ASX:BHP) for an earn-in joint venture agreement on the Kitlanya West and East Copper projects in Botswana.
The proposed transaction is a follow-up from Cobre's involvement in the BHP Xplor program, which also facilitated a seismic survey on the Kitlanya West Project.
The collaborative effort aims to explore Tier 1 copper-silver deposits along the Kalahari Copper Belt's basin margins.
Commenting on the agreement, Adam Wooldridge, CEO of Cobre, said, "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."
The agreement still requires the execution of formal binding documents and due diligence from BHP.
Cobre retains 100% ownership of its Ngami and Okavango Copper projects, which are excluded from the proposed transaction.
Cobre remains committed to advancing its Ngami Copper Project and further drilling initiatives at Okavango.
Cobre is a mineral exploration company with a focus on base and precious metals, particularly copper in the Kalahari Copper Belt and Western Australia.
The company owns 100% of an extensive land package of prospective copper and silver exploration tenements in the Kalahari Copper Belt.