Australia-based copper explorer Cobre and a subsidiary of BHP Group have signed a letter of intent to set up a joint venture (JV) to explore copper-silver deposits in Botswana.

The two companies will negotiate on material earn-in JV agreement pertaining to Cobre's Kitlanya West and East Copper projects in the Kalahari Copper Belt (KCB), Botswana.

This proposed partnership follows Cobre's involvement in the BHP Xplor programme, which also funded a seismic survey on the Kitlanya West project.

A JV with BHP would bring extensive exploration expertise and scale, enhancing the probability of significant discoveries along the basin margin exploration ground.

Cobre would maintain full ownership of its Ngami and Okavango Copper projects, which will not be part of the proposed transaction.

The proposed deal is contingent upon the approval and finalisation of formal binding documents and the successful completion of BHP's due diligence within the exclusivity period.

Cobre CEO Adam Wooldridge 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. Participating in the BHP 2024 Xplor cohort has provided the opportunity to do a belt scale review of the Kalahari Copper Belt, culminating with the collection of seismic data over the prospective northern margin of the belt.

“The proposed transaction with BHP would allow us to fully fund our follow-on exploration programmes and focus on discovering the Tier 1 deposits we believe may be hosted in our Kitlanya West and East projects.”

The Kitlanya West project straddles the northern margin of the KCB, while the Kitlanya East project is located south of Sandfire Resources' Motheo Production hub.