Daily Newsletter

12 September 2024

Daily Newsletter

12 September 2024

Belararox to acquire copper exploration project in Botswana

The deal is part of Belararox’s efforts to explore and develop large deposits in the most prospective geological settings.

Archana Rani September 12 2024

Belararox has signed a binding agreement to acquire 100% of KCB Resources, the owner of an exploration package in the Kalahari Copper Belt in Botswana.

This move is set to bolster Belararox's portfolio with the Kalahari Copper Belt Project, which offers potential for large-scale copper discoveries.

The acquisition forms part of Belararox’s efforts to explore, discover and develop large deposits in the most prospective geological settings.

Under the agreement, Belararox will issue up to nine million of its fully paid ordinary shares to the sellers over a three-year term.

Of these, three million shares will be issued on the execution of the agreement, with half of these being immediately without restriction. The remaining shares are subject to a 12-month escrow.

An additional three million shares will be escrowed for 12 months and issued on the first anniversary of the agreement. A further three million shares may be issued on the second anniversary, also escrowed for 12 months from the date of issue, subject to Belararox's right to withdraw from the transaction.

If Belararox elects to withdraw before the second anniversary, the agreement will terminate, allowing the sellers to buy back the assets or shares in KCB Resources for $1.

The company has also committed to an annual expenditure of A$1m ($660,000) for two years, with 60% dedicated to direct exploration of the licences.

Should Belararox fail to meet this commitment and not withdraw from the transaction, all outstanding shares under the agreement will be immediately issued to the sellers.

Additionally, if Belararox wishes to sell or dispose of a non-commercial, uneconomic asset/licence, the sellers will have the first right of refusal.

Belararox also agreed to grant the sellers a 1% net smelter royalty on all production from the licences, with the right to buy back the royalty for $1m for 50% and $2m for 100%.

The Kalahari Copper Belt Project is situated within northern Botswana's prolific Kalahari Copper Belt and consists of 14 exploration licences covering 4,268km².

The area is known to host several world-class, sediment-hosted copper-silver deposits, including the Motheo Mine and Boseto Mine.

Belararox Argentina exploration director Jason Ward said: “With this acquisition, Belararox now has another copper project in another world-class metallogenic province. The Kalahari Copper Belt hosts several significant deposits, and we believe there are more to discover.”

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