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Sandfire aims to produce in Botswana’s copper belt by 2022

Australia’s Sandfire Resources aims to start commercial mining of copper and silver in Botswana’s Kalahari copper belt by 2022, it said on Monday, as the country seeks to curb its dependence on diamond mining.

The Kalahari Copper Belt, which extends for nearly 1,000km from northeast Botswana to western Namibia, is touted as one of the world’s most under-explored copper-silver deposits.

THE PERTH-BASED COMPANY WILL BEGIN WORK ON THE FIRST PHASE OF 3.2 MILLION TONNE PER ANNUM NEXT YEAR

Analysts say it could help Botswana to diversify beyond its mainstay diamond mining, which contributes 70% to its export revenue and has left the southern African country overly exposed to one commodity, especially as the covid-19 pandemic has sapped demand for diamonds.

“We are very excited about the project and the significant potential of the Kalahari copper belt becoming the next global copper mining province,” CEO Karl Simich told Reuters in a telephone interview.
“We are targeting to commission to mine in 2022 and thereafter start expanding to a capacity to 5.3 million tonnes per annum,” he said.

The Perth-based company, which is listed on the Australian Stock Exchange, will begin work on the first phase of 3.2 million tonne per annum next year, Simich said, after its board approved a $259 million investment for its development.

Known as the T3 Motheo project, the Sandfire mine is set to be the second mining operation in the copper belt after the U.S.-based private equity firm Cupric Canyon, which has said it will commission its 3.6 million tonnes Khoemacau mine by mid-2021.

Simich said the mine will produce about 30,000 tonnes of copper and 1.2 million ounces of silver annually over the first 10 years of operations.

(By Brian Benza; Editing by Promit Mukherjee and Barbara Lewis)

https://www.mining.com/web/sandfire-aims-to-produce-in-botswanas-copper-belt-by-2022/

Tuesday 08 December, 2020
Metal Tiger plc

Completion of Sixth Financing Arrangement

Metal Tiger plc

8 December 2020

Metal Tiger plc
(“Metal Tiger” or the “Company”)
Completion of Sixth Financing Arrangement

Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to announce that it has entered into a further equity derivative collar financing arrangement (the “Sixth Financing Arrangement”) with the Lender pursuant to the Umbrella Facility.

The Sixth Financing Arrangement is secured over, in aggregate, 232,780 Sandfire Shares held by Metal Tiger, representing approximately 0.13% of Sandfire’s issued share capital.

Under the terms of the Sixth Financing Arrangement, Metal Tiger has:

entered into a stock lending arrangement with the Lender, pursuant to which the Lender (or an affiliate of the Lender) can borrow up to 232,780 Sandfire Shares from Metal Tiger;
obtained the right (but not the obligation) to sell 232,780 Sandfire Shares to the Lender in three years’ time at 80% of the reference price, being A$5.95 (subject to customary adjustments) (the “Reference Price”) (“Put”);
granted the Lender the right (but not the obligation) to buy 232,780 Sandfire Shares from Metal Tiger in three years’ time at an agreed premium of 145% of the respective Reference Price (“Call”); and
borrowed A$1,108,032.80 from the Lender, secured on a combination of the above with a maturity date of 8 December 2023 (the “Further Loan”).
Metal Tiger has the right to elect to settle the Put and the Call by way of physical delivery of Sandfire Shares or by way of a cash payment reflecting the value of the Put and Call at the time.

Costs of approximately A$0.108m associated with the Sixth Financing Arrangement (inclusive of all interest obligations and the net cost of the equity derivative collar for the term) have been deducted from the aggregate Further Loan proceeds, resulting in Metal Tiger receiving A$1m of cash proceeds. The net proceeds will be used to fund potential investment opportunities.

More.........
https://www.investegate.co.uk/metal-tiger-plc--mtr-/bus/completion-of-sixth-financing-arrangement/20201208113800Z4026/

Pan Global Reports Significant Drill Results and Adds Drill Holes at La Romana, Southern Spain

https://t.co/sao4s5H71l?amp=1

Investing News Network - December 7th, 2020
pan global logo
New drill hole intersects 24.4m at 1.03% Cu equivalent, including 7.2m at 2.05% Cu equivalent and confirms continuity of the high-grade mineralization Pan Global Resources Inc. is pleased to report excellent results for an additional three drill holes from the Phase 3 drill program at the La Romana target, in the Escacena Project. Results are pending for a further eight drill holes and five additional holes will …

New drill hole intersects 24.4m at 1.03% Cu equivalent, including 7.2m at 2.05% Cu equivalent and confirms continuity of the high-grade mineralization

Pan Global Resources Inc. (TSXV: PGZ) (OTC: PGNRF) (the “Company”) is pleased to report excellent results for an additional three drill holes (LRD16, LRD17 and LRD18) from the Phase 3 drill program at the La Romana target, in the Escacena Project. Results are pending for a further eight drill holes and five additional holes will test new geophysics targets up-dip of recent very high-grade massive sulphide drill intersections. La Romana is located approximately 6km southwest of the former Aznalcollar open pit mine in the Iberian Pyrite Belt, southern Spain.

Tim Moody, Pan Global President and CEO, states: “The latest drill results continue to show excellent continuity of the high-grade copper mineralization both down dip and along strike coincident with a large downhole EM conductor in the west of La Romana. The copper mineralization is wide open in this area and further drilling is now being planned to continue to test the extent of this zone. High tin content is again present and shows potential to add significant value whilst also providing further evidence of a large mineralizing system.”

Mr. Moody added: “Five drill holes have been added to complete the current Phase 3 drill program. These holes are aimed at testing up-dip of the recent high-grade massive chalcopyrite intersections and target potential thicker zones of mineralization closer to surface associated with large high priority geophysics anomalies in the east of the target area. With our current strong treasury position we are very well financed to complete all current planned drilling and expand on the current programs following these recent results.”

Highlights:

LRD16 intersected 10m at 1.02% CuEq (0.75% Cu, 0.063% Sn, 3.4g/t Ag) from 99m, including;
4.5m at 1.66% CuEq (1.3% Cu, 0.051 % Sn, 5.2 g/t Ag) from 105m, and
2.5m at 2.5% CuEq (2.1% Cu, 0.086% Sn, 8 g/t Ag) from 107m
LRD17 intersected 24.4m at 1.03% CuEq (0.74% Cu, 0.066% Sn, 3.7 g/t Ag) from 91.6m, including;
11.5m at 1.57% CuEq (1.24% Cu, 0.069% Sn, 5.5 g/t
more....

Metal Tiger 18 hr
@metaltigerplc
https://t.co/ftCk2yGrAB?amp=1

Pro-Active Investors Interview
Metal Tiger CEO and Cobre chairman talk strategic acquisition of Kalahari Metals
...........................
Metal Tiger Dec 4
@metaltigerplc

Metal Tiger well placed
https://t.co/WAIm7YghDl?amp=1

Copper prices are now at seven-year highs, driven by China’s post-pandemic infrastructure drive.

There are echoes here of the post Global Financial Crisis (GFC) period, circa 2010, when world #2 economy China began spending mountains of cash to keep its economy growing.

A huge chunk of this spend went into infrastructure construction, which had a direct impact on metals prices. Iron ore, nickel and copper are just a few that rebounded strongly in the ensuing period.

The same thing is happening right now.

According to Todd Warren, head of research at Tribeca Investment Partners, the outlook for copper is even more bullish this time around.

“Certainly, the anecdotal evidence that we have seen indicates China is pressing the pedal to the metal,” he told Stockhead.

“It’s as big, if not bigger, than it was post-GFC.

“But what is really exciting is that post-GFC they were still massively export driven as an economy. Today China is consuming all of it domestically.

“Which means when the rest of the world’s economies recover from COVID-19 it paints a pretty bullish picture for copper demand.”

Then there are copper’s well known supply issues.

On average, it takes seven years to get a new mine up and running, from first successful exploration hole to first tonne of dirt out of the ground.

But the resources sector’s long, drawn out downward trajectory –which bottomed around the end of 2015, early 2016 — meant there has been a lack of investment in new mines.

Sandfire Resources (ASX:SFR), one of a only a few copper-focused producers on the ASX, is building a new mine in Botswana.

Using strong cash-flow from its company-making DeGrussa mine in WA (the company had ~$304m in the bank at the end of September) Sandfire will spend ~$350m to build the T3 Motheo copper-silver project.

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