Ngami Project Faces Key Milestones Amid Strategic Investment and Funding Risks
Cobre Limited has landed a $4 million strategic investment from Tribeca Investment Partners to accelerate development of its Ngami In-Situ Copper Recovery project in Botswana, marking a key step toward commercialising this promising copper resource.
- Tribeca invests $4 million at $0.10 per share with 1-for-1 options at $0.13
- Funds allocated for well-field development and exploration ahead of demonstration plant
- Tribeca appointed strategic advisor for copper offtake and debt funding
- Ngami project holds maiden resource estimate of 11.5Mt at 0.52% copper and 11.6 g/t silver
- Other Cobre Botswana projects fully funded by partners BHP and Sinomine
Strategic Investment Accelerates Ngami ISCR Development
Cobre Limited (ASX, CBE) has secured a significant strategic investment from Tribeca Investment Partners, raising A$4 million through the placement of 40 million shares at $0.10 each. This capital injection is earmarked to fast-track the development of the Ngami In-Situ Copper Recovery (ISCR) project located in Botswana’s prolific Kalahari Copper Belt.
The investment is more than just capital; Tribeca has also entered an advisory agreement to support Cobre in securing copper offtake agreements and debt financing, critical components for advancing the project beyond exploration to production. The placement includes 1-for-1 attaching options exercisable at $0.13, pending shareholder approval, which could further strengthen Cobre’s financial position.
Ngami Project, A Copper Opportunity in Botswana
The Ngami project boasts a maiden resource estimate of 11.5 million tonnes grading 0.52% copper and 11.6 grams per tonne silver, positioning it as a notable copper-silver deposit in the region. The mineralisation is sedimentary-hosted and amenable to acid leaching, making it suitable for the ISCR method, which offers a lower environmental footprint compared to traditional mining.
Cobre plans to commence construction of a demonstration plant following the completion and approval of an Environmental Impact Assessment, currently underway. The well-field development funded by this placement will lay the groundwork for this next phase, aiming to replicate the success of similar ISCR projects like Taseko Mines’ Florence Copper in Arizona.
Broader Portfolio and Strategic Partnerships
While the Ngami project moves forward with Tribeca’s backing, Cobre’s other Botswana projects continue to progress under the stewardship of major partners BHP and Sinomine, who fully fund those ventures. This diversified approach mitigates risk and leverages strong industry relationships to maintain momentum across Cobre’s portfolio.
Executive Chairman Martin Holland highlighted the strategic nature of Tribeca’s involvement, emphasizing their thorough due diligence and alignment with Cobre’s vision. Tribeca’s portfolio manager Ben Cleary echoed this sentiment, noting Botswana’s stable mining jurisdiction and the promising potential of the Ngami ISCR project within the Kalahari Copper Belt.
Looking Ahead
The coming months will be pivotal as Cobre seeks shareholder approval for the attaching options and advances the Environmental Impact Assessment. The success of these steps will set the stage for the demonstration plant construction and potentially position Cobre as a next-generation copper producer leveraging innovative ISCR technology.
Bottom Line?
Tribeca’s strategic investment and advisory role could be the catalyst that transforms Ngami from promising resource to producing copper asset.
Questions in the middle?
- Will the Environmental Impact Assessment approval proceed on schedule to enable demonstration plant construction?
- How will Tribeca’s advisory role influence Cobre’s ability to secure copper offtake and debt financing?
- What exploration results might further expand the Ngami resource or improve project economics?
