Sandfire buys Namibian exploration tenements
Mining News Pro - Junior Kopore Metals has inked a binding agreement with a subsidiary of fellow listed Sandfire Resources to divest of its Namibian exploration assets.
According to Mining News Pro – Sandfire, through its subsidiary Metal Capital Exploration, would purchase 100% of the issued capital in Trans Kalahari Copper Namibia, which holds exploration properties in Namibia.
Sandfire would pay an initial A$1-million in cash and A$1-million in shares to Kapore, with additional consideration payable once Sandfire reached a decision to mine.
A A$1.5-million amount would become payable if an ore reserve of more than 300 000 t of copper, but less than 500 000 t of copper is defined before a decision to mine, while a A$3.5-million consideration would be payable if an ore reserve of more than 500 000 t of copper is defined.
Kapore told shareholders on Friday that the transaction with Sandfire provided the company with certainty of funding in the current challenging markets, and allowed Kopore to move ahead with planning its next explorationprogramme in Botswana, where its still retains 14 prospecting licenses.
“The transaction with Sandfire allows Kopore to move forward with sufficient capital and avoid excessive shareholder dilution at current share prices. Funding Kopore’s large prospective land holding while maintaining the company’s capital structure required some lateral thinking,” said Kopore MD Simon Jackson.
“We think this transaction provides our shareholders with the best of both worlds with zero dilution.
“Namibian exploration is in the capable hands of one of the largest land holders in the Kalahari Copper Belt, with Kopore shareholders remaining exposed to the upside of a future discovery and mine development. Kopore retains its 8 126 km2 land holding in Botswana, with multiple highly prospective and under explored targets.”