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- Cobre (CBE) is set to take over full ownership of Kalahari Metals (KML)
- Through a share purchase deed with Metal Tiger (MTR) Cobre will initially pay £750,000 (A$1.3 million) to increase its current interest to 75.5 per cent
- Cobre will then be granted a call option to acquire the remaining 24.5 per cent for a further $1.3 million in either cash or CBE shares
- Cobre says the deal is a “strategic step” in exploiting the potential of the Kalahari Copper Belt where Kalahari Metals holds interests over nearly 8600 square kilometres
- Cobre shares are trading 6.67 per cent higher at 3.2 cents at 12:15pm AEST while Metal Tiger shares last traded at 33 cents on May 10
Cobre (CBE) is set to take over full ownership of Kalahari Metals (KML).
The base metals explorer, who currently owns a 51 per cent stake in KML, entered a share purchase deed with ASX-lister Metal Tiger (MTR) to acquire the remaining 49 per cent interest in the private UK company.
Cobre will initially acquire 24.5 per cent of the shares in KML from Metal Tiger for £750,000 (A$1.3 million). This will increase Cobre’s interest to 75.5 per cent.
Following this, Cobre can be granted a call option to acquire the remaining 24.5 per cent of KML shares, giving it full ownership.
The shares will be exercisable for either £750,000 in cash or the equivalent in Cobre shares within 12 months from the call option.
Metal Tiger is a substantial holder of Cobre, holding around 21 per cent of its issued shares.
Cobre Executive Chairman and Managing Director Martin Holland said the transaction represents a “strategic step” for the company to take advantage of the exploration potential of KML.
Kalahari Metals owns the second largest tenure holding in the Botswana portion of the Kalahari Copper Belt (KCB) after ASX-listed company, Sandfire Resources (SFR).
Within this area, KML holds interests in 12 “highly prospective” exploration licences that span almost 8600 square kilometres.
According to the US Geological Survey, the KCB is considered one of the most prospective areas in the world for copper exploration, with multiple copper-silver deposits currently under development.
“We plan to begin drilling immediately under the new ownership structure and believe this renewed focus on our project will provide clarity on delineating value for shareholders,” Mr Holland said on the company’s next plan of action.
The initial acquisition, that is Cobre increasing its interest in KML to 75.5 per cent, is expected to be completed in early September.
Cobre shares were trading 6.67 per cent higher at 3.2 cents at 2:15 pm AEST while Metal Tiger shares last traded at 33 cents on May 10.
