Cobre’s Okavango Project Faces Crucial Test as Sinomine Stakes Major Claim
Cobre Limited has secured a A$1.5 million investment from Sinomine International, marking a key step in advancing copper exploration at Botswana’s Okavango Project. This funding will support a targeted diamond drilling program aimed at expanding promising mineralisation near established deposits.
- Sinomine acquires 25 million shares in Cobre for A$1.5 million
- Funding earmarked for diamond drilling at Okavango Copper Project in Botswana
- Drilling targets extensions of known copper-silver mineralisation and new strike zones
- Sinomine holds options for further investment and potential 70% project acquisition
- Okavango Project strategically positioned near MMG’s major Kalahari Copper Belt operations
Strategic Investment Completed
Cobre Limited has announced the completion of the first phase of a strategic investment by Sinomine International Exploration, a major Chinese resource group. Sinomine has acquired 25 million fully paid ordinary shares in Cobre for A$1.5 million, providing crucial capital to advance exploration at the Okavango Copper Project (OCP) in Botswana’s prolific Kalahari Copper Belt.
This investment is the initial step under an option agreement that could see Sinomine inject a further A$1.5 million and potentially acquire a 70% interest in the project for A$7 million. The swift completion of this transaction underscores the confidence both parties have in the project’s potential.
Focused Drilling Program Targets Growth
The funds will be directed towards a follow-up diamond drilling campaign designed to build on encouraging results from the 2024 drill program. Up to eight diamond holes are planned to test extensions of anomalous copper-silver mineralisation and explore new geological contacts along strike from MMG’s established deposits.
Geologically, the Okavango Project covers over 1,300 square kilometres of prospective stratigraphy immediately northeast of MMG’s Zone 5 production hub. The copper-silver mineralisation is sediment-hosted and structurally controlled, occurring along a redox contact between oxidised and reduced sedimentary units. This setting has proven highly fertile for copper discoveries in the region.
Strategic Partnership and Regional Significance
Sinomine’s involvement brings not only capital but also strategic expertise and access to global markets. As a publicly listed Chinese resource group with operations in over 40 countries, Sinomine’s backing could accelerate Cobre’s exploration and development ambitions.
For Cobre, the partnership aligns with its three-pronged approach to unlocking value in the Kalahari Copper Belt – exploring large-scale targets, drilling strategic prospects like Okavango, and advancing development opportunities. The proximity to MMG’s producing mines adds a layer of validation to the project’s potential.
Looking Ahead
With drilling set to commence in the coming weeks, the market will be watching closely for assay results that could confirm extensions of mineralisation and justify further investment. Sinomine’s options to increase its stake and potentially acquire majority ownership hinge on the success of this phase.
Overall, this transaction marks a significant milestone for Cobre, positioning the company to accelerate exploration in one of the world’s most promising copper belts amid growing global demand for critical minerals.
Bottom Line?
Cobre’s next drill results will be pivotal in determining whether Sinomine deepens its commitment and reshapes the project’s ownership landscape.
Questions in the middle?
- Will the upcoming drilling confirm extensions of high-grade copper-silver mineralisation?
- What factors will influence Sinomine’s decision to exercise further investment and acquisition options?
- How might this partnership affect Cobre’s strategic positioning within the competitive Kalahari Copper Belt?
