Signing of Share Purchase Agreement for Botswana Acquisition
Sydney, Dec 16, 2020 AEST (ABN Newswire) - Cobre Limited (
ASX:CBE) is pleased to announce that it has signed the Share Purchase Agreement (SPA) for the scrip-based acquisition of up to 51% of the equity of UK based company, Kalahari Metals Limited (KML), (Transaction).
The terms of the SPA are generally consistent with the binding Heads of Agreement previously entered into by the parties in respect of the Transaction. This announcement is a further update to Cobre's announcements on 24 August 2020, 22 October 2020 and 20 November 2020 in respect of the Transaction.
KML is a copper exploration JV company in the highly prospective Kalahari Copper Belt (KCB) in Botswana. KML owns the second largest tenure holding in the Botswana portion of the KCB after ASX listed company, Sandfire Resources Limited (ASX:SFR).
The KCB is regarded as one of the world's most prospective areas for yet-to-be discovered sedimenthosted copper deposits by the US Geological Survey. Exploration drilling of KML's tenements is currently underway by the existing owners, with future exploration activities to be jointly funded under a new shareholders agreement (effective on completion of the Transaction) entered into by Metal Tiger plc (LON:MTR) (MTR), Cobre, Cobre Kalahari Pty Ltd (Cobre Kalahari) (being a new wholly owned subsidiary of Cobre nominated by Cobre under the SPA to acquire the shares in KML) and KML.
KML is currently owned by seven shareholders, including Cobre's largest shareholder, MTR and six other shareholders (KML Vendors). The KML Vendors and Cobre are parties to the SPA. Other than MTR, none of the KML Vendors are related parties of Cobre. Upon completion of the Transaction, MTR will hold approximately 21% of the issued shares of CBE.
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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