Khoemacau COPPER MINE CONFIRMS INTENTION OF OWNERS TO SELL OPERATION.

Khoemacau Copper Mining confirms that its owners have commenced a process to engage with potential buyers of their interests. Khoemacau is majority owned by Cupric Canyon LP, with funds advised by Global Natural Resources Investments (GNRI) and by Resource Capital Fund VII LP.

The current owners have invested significant funds in Khoemacau over the last decade taking it from exploration through to the development of a sustainable, long-life operation. With studies now completed towards a further expansion of the Khoemacau operation, the current owners have determined that now is a logical time for new owners to embark on this phase of the mine’s development.

A comprehensive and global process will be conducted to seek a capable and responsible buyer for Khoemacau. If it transpires, this potential change of ownership, is expected to bring significant positive consequences for Botswana and the mine’s stakeholders.

Khoemacau has delivered some very significant achievements over the past 10 years, including completing construction of the project in 2021 safely, on time and on budget. By the end of 2022 it had completed the ramp up to initial run rate production of 60 to 65ktpa copper and 2Moz pa of silver in concentrate.

Khoemacau has tremendous opportunities ahead of it, including an expansion to increase output to around 130ktpa copper and 5Moz pa silver in concentrate. With its enviable position in the Kalahari Copper Belt, Khoemacau also has a significant pipeline of exploration targets. The mine has also completed initial studies for the development of renewable sources of energy through its solar energy project.

Operations at the Khoemacau mine will be unaffected by the potential sale process. Khoemacau CEO, Johan Ferreira says: “Having successfully completed the initial ramp up and completed the pre-feasibility studies for an expansion and a renewable energy project, we are now moving towards the next phase of growth for the business. Together with further exploration planned over and above the expansion, we are well on our way to unlocking the true potential of the Kalahari copper belt. All this growth will deliver an exciting future for existing and additional employees as well as the people of Botswana, particularly our neighbouring communities. It is my view that any potential acquirer of this business will continue our own growth strategy as a bare minimum, as we believe the growth and upside is one of the key attributes of our business that will attract potential new owners”.

The Government of Botswana has been appraised of the process, as have unions, employees, and other stakeholders. The process is expected to take several months. There can be no certainty that the process will result in the sale of Khoemacau. Further updates will be provided in due course if appropriate.