Extension to Binding HOA for Botswana Copper Acquisition
Sydney, Oct 22, 2020 AEST (ABN Newswire) - Cobre Limited (
ASX:CBE) previously announced, on 24 August 2020, the signing of a binding Heads of Agreement (HOA) for the proposed scrip-based acquisition of up to a 51% interest of the equity of Kalahari Metals Limited (KML) (the Transaction).
KML owns the second largest tenure holding in the Bostwana portion of the Kalahari Copper Belt after ASX listed company Sandfire Resources (ASX:SFR).
Cobre advises that it has agreed with KML shareholders to extend the exclusivity period from 21 October 2020 to 20 December 2020. The parties have agreed to extend the exclusivity period in order to allow:
- Cobre to complete its detailed due diligence on KML and its exploration licences by 20 November 2020;
- Cobre and the KML shareholders to negotiate and execute an agreed share purchase agreement by 20 December 2020; and
- Cobre and Metal Tiger plc to negotiate and execute a shareholders' JV management agreement in relation to the future management of KML by 20 December 2020.
The Transaction remains subject to ongoing due diligence, finalising transaction documents, receipt of relevant regulatory approvals, and approval by Cobre shareholders at an Extraordinary General Meeting which is expected to occur in early 2021.
About Cobre Limited
Cobre Limited (ASX:CBE) is a copper and base-metals explorer with projects in Western Australia and Botswana. The Company recently discovered a new high-grade VMS deposit enriched in Copper, Gold, Zinc and Silver in Western Australia, and is currently exploring approximately 8,100 km2 of tenements within the Kalahari Copper Belt (KCB) in Botswana.
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