Kopore Metals Selling Botswana Copper Project

THE BOURSE WHISPERER: Kopore Metals (ASX: KMT), by way of its wholly owned subsidiary company, Alvis-Crest (Proprietary) Limited, is selling its Virgo project in the Republic of Botswana.

Having struck a binding term sheet to assist with ongoing exploration at the Virgo project. Kopore Metals has agreed to sell 75 per cent of the issued capital in Alvis to AIM-listed ARC Minerals.

Alvis is the holder of two prospecting licences in the Kalahari Copper Belt in Botswana within 23km of the Zone 5 mine, currently under construction by Cupric Canyon Capital LP.

These two licences, PL135/2017 and PL162/2017 comprise Kopore’s Virgo project.

The Transaction is subject to certain conditions, including ARC to issue £1.2 million in ARC shares to Kopore in consideration for the purchase of 75 per cent of the issued capital of Alvis.

ARC has an option to buy the remaining 25 per cent for US$5 million in cash or ARC shares.

Kopore is to be free carried to a Bankable Feasibility Study with no dilution and will receive a 1 per cent net smelter royalty capped at US$30 million, which ARC can buy back for US$5 million.

“We are delighted to enter into this transaction with ARC,” Kopore Metals managing director Simon Jackson said in the company’s ASX announcement.

“They have been successful in adding value for their shareholders through their interests in Zambia and we share their vision for the Virgo project.

“We anticipate that having people and infrastructure in southern Africa will allow ARC to progress exploration at the Virgo project much quicker than Kopore would have been able to do as the COVID-19 pandemic continues to affect international and regional movement of people and other assets.

“Kopore can now focus on its remaining 3,592 square kilometres of exploration licences in Botswana at its Ghanzi West project (where reprocessing of historical data is ongoing) and at the Horseshoe West Project in the Bryah Basin of Western Australia, where the company has the right to earn up to a 70 per cent interest and where heritage surveys are now planned for early April 2021.

“We are excited to have copper exploration projects in two of the world’s most sought after jurisdictions given market indications that we are in the early months of what we think could potentially be a copper super cycle.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@koporemetals.com

 

Web: www.koporemetals.com