Altona Rare Earths has signed a binding option agreement to acquire a significant stake in the Sesana copper and silver asset in Botswana.
Sesana, within prospecting licence (PL) 2329/2023 (tenement), is situated in the heart of the Kalahari Copper Belt.
As per the agreement, Altona can acquire up to an 85% stake in Sesana from Ignate African Mining for $110,000 in cash and $250,000 in shares.
Additionally, the deal involves phased technical and exploration expenditure commitments.
Sesana's location within the Kalahari Copper Belt, known for its extensive copper-silver deposits, is strategic.
It is 25km from the operational Khoemacau underground mine and surrounded by active exploration sites, indicating a region ripe for mining opportunities.
Recent interpretations of airborne geophysical data have revealed promising geological structures for copper-silver mineralisation within the 274km² tenement.
These findings have set the stage for Altona's planned exploration activities.
Altona has outlined its initial exploration strategy, which is set to commence in 2024.
The company will employ a combination of geochemical and geophysical exploration methods to assess the potential of the Sesana project.
The tenement licence is valid until 31 March 2026, after which it can be renewed twice for up to two years each.
Altona CEO Cedric Simonet said: “We are delighted with the option agreement for
the Sesana copper and silver project, located in the heart of an emerging copper province where world-class discoveries have already been proven through mine development.
"Furthermore, Botswana is considered as one of the best mining destinations in the world and much remains to be discovered.”
Simonet further noted: “The acquisition of the Sesana Project is in line with the implementation of Altona's portfolio diversification strategy. This, and the recently acquired Kabompo South critical raw materials project in Zambia, is expected to generate new flow at a relatively low cost and will complement our flagship Monte Muambe rare earths project in Mozambique.”
