Belararox secures rights to acquire project in Zambian copperbelt

Belararox Ltd (ASX:BRX) (Belararox or the Company), an advanced mineral explorer focused on high-value clean energy metals, is pleased to announce the Company has secured the potential acquisition of a 100% interest in two (2) exploration licence tenements, Solwezi East and Chantente, in Zambia from Chemopharm Limited. The tenements consist of over 17,800 hectares in the Central African Copper Belt (“CACB”), within a region close to the northern Zambian border, with exploration and mining service providers that are dedicated to servicing the copper mines and exploration projects in the region.

Neither Chemopharm nor any of its associates are related parties of, or material investors in, the Company.

The Central African Copperbelt constitutes a metallogenic province that hosts numerous world-class copper-cobalt deposits both in the Democratic Republic of the Congo (“DRC”) and Zambia.

Exploration Director – Argentina, Jason Ward, commented: “This acquisition of the Solwezi East and Chantente projects present a unique opportunity to explore the Zambian Copperbelt and further diversify Belararox’s portfolio of copper and base metals projects in world class metallogenic regions.”

Belararox’s Managing Director, Arvind Misra, commented: “Belararox’s significant move involves a non-binding term sheet with Chemopharm to acquire Solwezi East and Chantente exploration licences in the Zambian Copperbelt, near the Congolese border. Our tenures lie within 175km of five major copper mines: Sentinel, Lumwana, Kansanshi, Kipushi, and Konkola. This enhances our copper project portfolio, demonstrating our commitment to increasing shareholder value. As part of the due diligence process, we’re actively pursuing desktop studies and project planning to validate data, confirm copper results, and identify promising targets.”

The acquisition of the tenements (“Acquisition’’) is subject to the execution of a definitive legally binding agreement between the parties and other customary conditions precedent including:

• the Company securing all shareholder and regulatory approvals both in Australia and Zambia required to complete the Acquisition including shareholder approval for the issue of the consideration securities referred to below;
• completion of technical and legal due diligence by the Company in relation to the tenements satisfactory to the Company in its absolute discretion; and
• the tenements being in good standing and full force and effect and free from any encumbrances or any liability to forfeiture or non-renewal under the relevant Zambian legislation and revelatory

In consideration of the Acquisition, on completion, the Company will:

• pay to Chemopharm $100,000 in cash;
• issue to Chemopharm or its nominee:
  • 750,000 fully paid ordinary shares in the capital of the Company (subject to a 12-month period of voluntary escrow from the date of issue of the shares);
  • 1,000,000 unlisted options in the Company with an exercise price of $0.95 and expiring on 1 June 2024 (subject to cancellation if the term of both tenements are not extended or renewed for at least a period of two years or mining leases are not granted in respect of both tenements);
  • 2,000,000 listed options in the Company (ASX: BRXOA) with an exercise price of $0.66 and expiring on 13 July 2026 (1,000,000 of which will be subject to voluntary escrow until the term of both tenements are extended or renewed for at least a period of two years or mining leases are granted in respect of both tenements);
  • the following performance rights (convertible into quoted shares in the Company, expiring on 1 November 2027):
    • 500,000 performance rights with the following vesting milestone: the extension or renewal of both tenements for at least a period of two years or the grant of mining leases in respect of both tenements;
    • 1,000,000 performance rights with the following vesting milestone: on the acquisition of a further mining tenement by the Company in Zambia on terms satisfactory to the Company in all respects;
    • 2,000,000 performance rights with the following vesting milestone: three drilling intersection of at least 30 metres at 5% copper metal or a polymetallic equivalent on a tenement;
    • 1,000,000 performance rights with the following vesting milestone: upon a JORC compliant inferred resource being delineated on a tenement of greater than 250,000 t of contained copper metal or a polymetallic equivalent; and
    • 2,000,000 performance rights with the following vesting milestone: upon a JORC compliant inferred resource being delineated on a tenement of greater than 500,000 t of contained copper metal or a polymetallic equivalent.

The Company proposes to seek shareholder approval for the issue of the above securities to Chemopharm for the purposes of Listing Rule 7.1. Subject to the execution of a definitive legally binding agreement between the parties, the Company anticipates that an extraordinary general meeting of the Company will be convened in January 2024 seeking shareholder approval for the issue of these securities.

On completion of the Acquisition, Chemopharm will hold a 7.49% interest in the Company on a fully diluted basis (assuming the issue of no further securities by the Company prior to completion of the Acquisition).

The tenements are located in the north of Zambia in the CABC which constitutes a metallogenic province that hosts numerous world-class copper-cobalt deposits both in the DRC and Zambia. There are a host of mines with mineral resources that surround the tenements.

There are five (5) key copper mines located within ~175 km of the Solwezi East and Chantente exploration licences:

• Sentinel mine – First Quantum Minerals Ltd (TSX:FM) – Total Mineral Resource 8Mt @ 0.44% Cu (First Quantum Minerals Ltd, 2023.a);
• Lumwana mine – Barrick Gold Corporation (NYSE:GOLD, TSX:ABX) – Total Mineral Resource 1,920 Mt @ 52% Cu (Barrick Gold Corporation, 2023);
• Kansanshi mine – First Quantum Minerals Ltd (TSX:FM) – Total Mineral Resource 1,011.5 Mt @ 65% Cu (First Quantum Minerals Ltd, 2023.b);
• Kipushi mine – Ivanhoe Mines Ltd (TSX:IVN, OTCQX:IVPAF) – Total Mineral Resource 12.92 Mt @ 0.84% Cu within the 7% Zn cut-off grade and 2.73 Mt @ 4.01% Cu within the 1.5% Cu cut- off grade within the same deposit (Peters, Robertson, Witley, Joughin, & Edwards, 2022); and
• Konkola mine – Vedanta Resources Limited – Total Mineral Resources 368.8Mt @ 3.17% Cu (Vendanta Resources Limited, 2019).

The geology of the area includes the Lufilian Arc which has been subdivided into 4 main structural domains where the DRC deposits are all in the External Fold and Thrust Belt while all major deposits in Zambia are in the Domes region where the deposits are spatially associated with the older basement rocks. The tenements are in the Domes region 27 km northeast of the Solwezi dome within 15 km of the Kansanshi mine.

Potential copper mineralisation within the tenements is expected to consist of one (1) or more of the following types:

• Vein-hosted copper-sulphide mineralisation, that is associated with albite halos with disseminated sulphides;
• Stratabound bedding parallel disseminated sulphide mineralisation in graphitic units that are typically stronger near the larger veins; and
• Breccia-hosted sulphide mineralisation, the breccias are typically generated by brittle structural

The Company is working towards completing its technical and legal due diligence in relation to the tenements and negotiating the terms of a definitive legally binding agreement with Chemopharm.

The Company will keep shareholders informed of developments.