Australian copper company MOD Resources has entered into an agreement with Metal Tiger (MTR) to acquire 30% stake in T3 Project.
The acquisition enables MOD Resources to gain full ownership of the T3 Project in Botswana. The project is claimed to be a financially robust copper project.
The transaction is expected to simplify ownership of the T3 Project, apart from accelerating financing and development of the project.
Besides, MOD Resources is anticipated to other strategic opportunities in the Botswana Copper belt by gaining full ownership of the T3 Project processing plant.
MOD’s managing director Julian Hanna said: “The MOD Board believes this binding agreement with Metal Tiger has the potential to add significant value for MOD shareholders.
“Firstly, it will consolidate ownership of the very substantial T3 Copper Project which, assuming a decision to mine is made in early 2019, should underpin the future of this company for many years.
“Secondly, it provides a very flexible structure for MOD, with options to acquire MTR’s interests in any new discoveries that reach the scoping study level within 3 years, and an option to consolidate the remaining exploration assets 3 years after completion.”
MOD has also signed an agreement to acquire rights to buy Metal Tiger’s 30% stake in all other JV exploration assets for a period of up to three years from the completion of the transaction.
The rights allow MOD to purchase stake in the joint venture exploration assets based on the developmental potential of the assets.
The JV exploration assets will be transferred into a new Botswana registered joint venture company, Tshukudu Exploration, in which MOD and MTR will own a stake of 70% and 30%, respectively.
Through a customary joint venture agreement, MOD will manage Tshukudu Exploration.
The Australian-listed company MOD carries out exploration activities in the central Kalahari Copper Belt, Botswana. It holds 70% of a UK incorporated joint venture company, Metal Capital with Metal Tiger owing 30%.