• Sinomine to acquire 70% stake in Botswana’s Okavango copper project

• Deal involves A$3M funding, A$7M cash for joint venture with Cobre

• Move expands Sinomine’s African copper footprint after Namibia smelter deal
  

Chinese mining company Sinomine has signed an investment agreement to acquire a 70% stake in the Okavango copper project in Botswana. The announcement, made today, Tuesday, September 2, by Cobre Limited, the current asset holder, could mark the Chinese group's entry into the southern African nation's copper sector.

Sinomine has committed to an initial investment of up to 3 million Australian dollars (approximately $1.9 million) through share placements to fund exploration. This financing would give Sinomine the option to acquire a 70% stake in the project in exchange for an additional cash payment of 7 million Australian dollars to Cobre. The two parties plan to form a joint venture to manage the project, with Cobre retaining the remaining 30%.

With this agreement, Sinomine would become the majority shareholder of a 1,363 square kilometer asset located in the Kalahari Copper Belt. This region is increasingly attracting mining investors, including BHP, which announced a $25 million investment in the Kitlanya projects, also managed by Cobre, back in March. For Sinomine, this venture into Botswana could also strengthen its presence in African copper, less than a year after acquiring the Tsumeb smelter in Namibia.

Several conditions need to be met before the acquisition is finalized, including due diligence and the necessary regulatory approvals for the share placements. Sinomine is also active in Africa's lithium sector with the Bikita project in Zimbabwe.

Aurel Sèdjro Houenou