Belararox (ASX:BRX) has executed a binding agreement to acquire privately held KCB Resources, which owns 4,286km2 of prospective tenure on Botswana’s Kalahari Copper Belt.
The Kalahari Copper Project comprises 14 prospecting licences and covers favourable stratigraphy and structural settings within a sediment-hosted copper mineral system. KCB Resources owned the project through its subsidiaries Blackrock Resources Proprietary and NI MG Northern Nickel Proprietary.
Under the agreement, Belararox, which has a market capitalisation of $23.81 million, will issue up to 9 million shares to KCB shareholders over a three-year period.
Subject to the company’s right to elect to withdraw from the transaction prior to the second anniversary of the date of executing the agreement, a further three million shares will be issued.
Belararox has also agreed to spend $1 million in exploration expenditure for two years, of which 60% will be spent on direct exploration of the licences.
The company will grant the sellers a 1% net smelter royalty (NSR) return in respect of all production from the licences, subject to Belararox’s right to buy back the NSR on the basis of 50% for US$1 million and 100% for US$2 million.
Shares climbed as much as 25.5% to an intra-day peak of $0.295 on the back of the news.
Managing Director Arvind Misra says the Kalahari Copper Belt region hosts several “world-class” copper-silver orebodies near the licences, representing an opportunity for the company.
“The acquisition secures our second exciting copper project in a highly favourable exploration and business environment,” Misra says.
Belararox has several exploration activities planned that are designed to rapidly develop the Kalahari Project towards the goal of discovery.
Exploration work will include an airborne gravity survey and gravity profile inversion modelling, a 2D seismic survey, RAB or aircore drilling to validate geophysical interpretations, and an induced polarisation survey.
Once this work is completed, the company will conduct a reverse circulation or diamond drilling program. The company aims to drill strong chargeability anomalies.
Exploration Director Jason Ward says Botswana is a desirable jurisdiction with great prospectivity and the projects acquired are in the right geological setting to host copper and silver.
Several orebodies are located in close proximity to the ground, including Sandfire‘s Motheo Copper Mine, MMG Limited’s Khoemacau Mine, and Cobre Limited‘s Ngami Copper project.
“The Kalahari Copper Belt hosts several significant deposits, and we believe there are more to discover,” Ward says.
Belararox is a mineral explorer focused on securing and developing resources to meet the surge in demand from technology, battery, and renewable energy markets. The company’s projects include the potential for zinc, copper, gold, silver, nickel, and lead.
Write to Aaliyah Rogan at Mining.com.au
Images: Belararox
