Sandfire Resources is to purchase 100% of the issued capital in Trans Kalahari Copper Namibia (TKC), the wholly owned subsidiary of Kopore Metals that holds Namibian exploration properties.
Sandfire will pay upfront consideration of $1 million cash and $1 million in Sandfire shares, calculated based on Sandfire’s 5-day VWAP at closing.
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Simon Jackson, Kopore’s MD says:
“The Transaction with Sandfire allows Kopore to move forward with sufficient capital and avoid excessive shareholder dilution at current share prices. Funding Kopore’s large prospective land holding whilst maintaining the Company’s capital structure required some lateral thinking.
“We think this transaction provides our shareholders with the best of both worlds with zero dilution. 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.
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“Kopore retains its 8,126 km2 land holding in Botswana with multiple highly prospective and under explored targets. I think the Transaction is particularly pleasing considering the current COVID-19 crisis and we think the sale of a portion of our assets for a total consideration approaching the market capitalisation of the Company is an excellent outcome for Kopore shareholders. We look forward to sharing details of our next exploration steps soon.”