Kalahari Metals Limited

Kalahari Metals Limited (“KML”) is a Botswana focused exploration company targeting sediment hosted and stratabound copper and silver mineralisation on the Kalahari Copper Belt. The KML tenements are in close proximity to the Sandfire Resources Ltd (“Sandfire”, ASX: SFR) T3 Copper-Silver Project, which was discovered by the previous Metal Tiger/MOD Resources Ltd (“MOD”) (30%/70%) joint venture in March 2016.

total tenement area
(Sandiman & Perrinvale)
holding in KML
(+ 2% NSR on wholly owned licences)

Botswana Overview

Botswana (officially the Republic of Botswana) is a mining-friendly southern African country.  It is one of the most stable economies on the continent and Africa's oldest continuous democracy. Formerly a British protectorate, following independence in 1966, Botswana has enjoyed more than five decades of uninterrupted civilian leadership, progressive social policies, and significant capital investment. The mining sector, principally diamond mining, is the primary driver of GDP with the tourism sector a secondary earner.

Botswana ranks as one of the least corrupt and best places to do business in Sub-Saharan Africa.  The Fraser Institute mining survey Investment Attractiveness Index and Policy Perception Index ranked Botswana within the top-three African jurisdictions for mining investment in 2019 (https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2019.pdf).

Investment Overview

The project investment comprises an equity investment and a joint venture arrangement with Kalahari Metals. As announced on 12 April 2021, the Company has a 50.01% (H1 2020: 62.2%; 2020 full year: 62.2%) interest in Kalahari Metals, a private copper exploration company with direct and indirect exposure to twelve exploration licences in the Kalahari Copper Belt (“KCB”) covering 8,714km2. Cobre holds the remainder of the shareholding.

On 15 December 2020, Kalahari Metals signed a Share Purchase Agreement and Shareholders Agreement with Cobre, pursuant to which, Cobre agreed to purchase 49.99% of Kalahari Metal's shares, in exchange for newly issued shares in Cobre. Upon completion of the Transaction, and subject to obtaining change in control approval from the Minister of Minerals, Energy and Water Resources of the Republic of Botswana, Cobre will increase its shareholding in Kalahari Metals to 51% and Metal Tiger will reduce its shareholding to 49%.

On 6 April 2021, the Company announced that Cobre shareholders voted in favour of the conditional acquisition by Cobre of 51% of the issued share capital in Kalahari Metals, and as such, all conditions of the Transaction were satisfied, save for final receipt of the change in control approval from the Minister of Minerals, Energy and Water Resources of Botswana.

On 12 April 2021, the Company announced that the Kalahari Metals Transaction completed with Cobre purchasing 49.99% of the Kalahari Metal's shares in exchange for 20,999,214 newly issued ordinary shares in Cobre. Metal Tiger received 5,106,963 new Cobre Shares, increasing its holding to 26,006,963 Cobre Shares, representing approximately 16.62% of Cobre's enlarged share capital. Following the transfer, Metal Tiger holds 50.01% interest in Kalahari Metals with Cobre holding the remaining interest.

On 19 April 2021, Metal Tiger announced that the joint venture board of Kalahari Metals approved a major new drilling programme focussed on the discovery of copper/silver deposits on the Kalahari Copper Belt.

On 11 May 2021, drilling commenced on the Kitlanya East Project are in Botswana.

Further details on KML is available on their website: https://kalaharimetals.com .

Table 1: Kalahari Metals Limited 100% Owned Exploration Licence Holdings with Granted Metal Tiger Royalties

Licence Number Registered licence holder Issue date Area (km2) Metal Tiger Net Smelter Royalty (NSR)
PL148/2017 Kalahari Metals Ltd 1-Jul-17 999 2%
PL149/2017 Kalahari Metals Ltd 1-Jul-17 1000 2%
PL342/2016 Kitlanya Pty Ltd 1-Jan-17 942 2%
PL343/2016 Kitlanya Pty Ltd 1-Jan-17 956 2%
PL070/2017 Kitlanya Pty Ltd 1-Apr-17 994 2%
PL071/2017 Kitlanya Pty Ltd 1-Apr-17 914 2%
PL072/2017 Kitlanya Pty Ltd 1-Apr-17 845 2%

KML Project Overviews

KML holds an interest in 12 exploration licences, constituting the four project areas outlined below (Figure 1). The Botswana Copperbelt remains a relatively unexplored terrain, with potential for the discovery of both large and mid-tier copper deposits. Historical and contemporary exploration work over the Kalahari Copper Belt has shown that copper-silver mineralisation is typically stratigraphically located in reduced shales and siltstones of the D’Kar Formation (“DKF”) in proximity to the contact with underlying oxidised reed-beds of the Ngwako Pan Formation (“NPF”), stratigraphically known as the DKF-NPF REDOX contact. Although mineralisation is stratabound, sharing commonalities with the Central African Copperbelt of Zambia/DRC and the Kupferschiefer Cu district in Central Europe, later deformation has served to remobilise and locally upgrade copper deposits.

Locally, structure and trap-sites play an important role in controlling mineralisation. Based on KML’s regional target generation studies, including geophysics data interpretation and reprocessing, extensive historically untested potentially mineralised lithological strike has been identified. This includes over 500km of interpreted prospective geological contacts within the KML exploration ground.

Okavango Copper Project

The Okavango Copper Project (“OCP”) consists of the 100% owned KML prospecting Licences PL148/2017 and PL149/2017 and the Triprop JV prospecting licenses PL41/2012, PL42/2012 and PL43/2012. The OCP is located in the central portion of the Kalahari Copper Belt and is immediately along strike, on the perceived central structural corridor, to the east of the Cupric’s Zone 5 Deposit (Figure 2) and Sandfire’s T3 Project. Historical soil sampling (13,281 samples) confirmed extensive copper anomalism which was interpreted to derive from a possible REDOX contact within project area.

KML have flown regional airborne high-resolution electromagnetic and magnetic geophysics, to provide valuable information on the underlying structures and potential trap-sites for copper-silver mineralisation and to correlate the geology below the sand cover (Figures 3 & 4).

The OCP 2019 Drilling Programme consisted six holes (OCP01 to OCP06), 1,656m drilled, which successfully confirmed the presence of DKF-NPF stratigraphy and the DKF-NPF REDOX contact that hosts prospective Cu-Ag mineralisation.

Figure 1: Map of KML Project Areas Showing the Location of Neighbouring Copper deposits (source: KML)
Figure 1: Map of KML Project Areas Showing the Location of Neighbouring Copper deposits (source: KML)

Equity Investments

Royalty Investments

Cobre Pty Ltd

Southern Gold

Kalahari Metals Ltd