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Kopore Metals (ASX:KMT) to sell Namibian assets to Sandfire Resources

Mining
ASX:KMT
02 May 2020 02:00 (AEST)
Kopore Metals (ASX:KMT) - Managing Director, Simon Jackson

Source: 121 Mining Investment TV

Kopore Metals (KMT) has announced the sale of its Namibian exploration assets to Sandfire Resources’ subsidiary, Metal Capital Exploration.

Sandfire has agreed to purchase 100 per cent of the issued capital in Trans Kalahari
Copper Namibia (TKC), Kopore’s wholly-owned subsidiary that holds the Namibian exploration properties.

Sandfire will pay $1 million in upfront cash and $1 million worth of Sandfire shares, calculated based on its five day VWAP (volume weighted average price) at closing.

“The Transaction with Sandfire allows Kopore to move forward with sufficient capital and avoid excessive shareholder dilution at current share prices,” Managing Director Simon Jackson said.

“Namibian exploration is in the capable hands of one of the largest land holders in the Kalahari Copper Belt with Kopore shareholders remaining exposed to the upside of a future discovery and mine development,” Simon added.

TKC has also executed a settlement agreement with Hebron Prospecting. For the consideration of N$1.5 million, Hebron will provide all relevant technical and intellectual property to TKC and withdraw its application to the High Court of Namibia in respect of four of TKC’s wholly owned exploration licences.

TKC has now been given complete access and custody of all historical geological information including geological databases, records and physical samples for four of its nine Namibian exploration permits.

The Transaction with Sandfire ensures Kopore will be well-funded in the current challenging market and allows the company to continue planning its next exploration programs in Botswana, which are expected to commence once COVID-19 restrictions are relaxed.

Kopore retains its 14 prospecting licences in Botswana and has a total landholding of roughly 8126 square kilometres.

Kopore ended the day in the grey, trading flat at 0.5 cents each.

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