Tertiary Minerals plc has signed a definitive earn-in with KoBold Metals for the Konkola West copper project in Zambia.
JOINT VENTURE
The agreement over exploration licence 27067-HQ-LEL is between the company’s 96% owned subsidiary Tertiary Minerals (Zambia) Ltd (TMZ), a subsidiary of KoBold and TMZ’s local partner Mwashia Resources Ltd.
Private US-based mineral explorer KoBold will earn into Konkola by deep drilling for projected extensions of the “high-grade copper ore-shale exploited” on adjacent mining leases at the Konkola, Lubambe and Musoshi mines.
For stage I of the earn-in, KoBold will complete at least two drill holes for a total minimum of 2,000m within 14 months.
Tertiary said that the first drill site had been chosen with drilling expected to start no later than May 2024.
On completion of stage I, the partners will form a joint venture company, comprising KoBold with 51%, TMZ 39% and Mwashia 10%, and enter into a shareholder agreement.
KoBold will free carry Mwashia’s 10% equity interest with the option to purchase it any time for US$3.5 million.
In stage II of the earn-in KoBold may increase its ownership to 70% through sole funding $6m on exploration within four years of signing.
TMZ would then hold a 20% interest and Mwashia will continue to hold a 10% carried interest.
If the earn-in terminates, TMZ may hold 90% of the licence, free carry Mwashia’s 10% and have the option to purchase it for $3.5m.
Tertiary executive chairman Patrick Cheetham added: “Konkola West is located in one of Zambia’s major copper mining areas where Vedanta has recently committed to invest
over $1 billion in revamping the adjacent Konkola copper mine.
“KoBold will bring a strong technical team and financing to the Konkola West project.
“It has been drilling with multiple rigs throughout the summer on its adjacent Mingomba copper deposit and is now committed to a deep drilling programme at Konkola West.”