Belararox Cuts Costs, Risks Losing Bullabulling Gold Assets to Focus on Copper

Strategic Shift in Asset Portfolio

Belararox Limited (ASX: BRX) has taken a decisive step to streamline its asset portfolio by executing a binding option agreement with Minerals 260 Limited. This agreement grants Minerals 260 an exclusive two-year option to acquire Belararox’s Bullabulling project tenements, a package of 26 tenements located approximately 30km west of Coolgardie in Western Australia’s Eastern Goldfields.

The initial consideration of A$150,000 has already been paid, with Minerals 260 holding the right to exercise the option for a further A$600,000 in cash or shares. This move effectively transfers the responsibility for tenement management and exploration funding to Minerals 260 during the option period, allowing Belararox to reduce its holding costs in Australia.

Refocusing on Copper Ambitions

Belararox’s Managing Director, Arvind Misra, emphasised that the agreement aligns with the company’s strategic goal of discovering and developing world-class copper deposits. By divesting the Bullabulling tenements, which are primarily prospective for gold and lithium, Belararox can concentrate its resources on advancing its flagship TMT copper project in Argentina and its recently acquired licences in Botswana’s Kalahari Copperbelt.

The TMT project, situated in Argentina’s San Juan Province, is positioned between two prolific metallogenic belts and has already yielded promising drilling results. Assay outcomes from the maiden drilling program are eagerly awaited and expected to provide critical insights into the project’s potential.

Opportunity for Minerals 260 and Regional Consolidation

For Minerals 260, the option agreement represents a strategic opportunity to consolidate tenements in a highly prospective region. The Bullabulling tenements are contiguous to MI6’s recently acquired Bullabulling gold project, positioning Minerals 260 to potentially make significant discoveries in gold and lithium. This could enhance their footprint in the Eastern Goldfields, a region renowned for its mineral wealth.

Belararox’s decision to offload these tenements while retaining a focus on copper projects reflects a broader industry trend of companies honing in on metals critical to the energy transition, such as copper, which is essential for electrification and renewable technologies.

Looking Ahead

As Belararox awaits assay results from its TMT drilling and monitors Minerals 260’s decision on exercising the option, the company’s strategic pivot will be closely watched by investors. The success of this approach hinges on the copper projects delivering on their promise, potentially reshaping Belararox’s profile in the mining sector.