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Opportunities for work in Botswana have been limited since the outbreak of COVID-19 last year, so the company has struck a deal with AIM-listed ARC Minerals, where well-known ASX identity Brian McMaster is a non-executive director.
ARC will take a 75% stake in Virgo for £1.2 million in ARC shares, with an option to buy out Kopore's remaining 25% interest for US$5 million in cash or shares at the time of a final investment decision.
In the meantime, ARC, which has interests in the Zambian Copper Belt, will carry Kopore through all costs completion of a bankable feasibility study, including spending at least $200,000 per annum over the three years expected before FID.
Kopore will also be granted a 1% royalty, capped at $30 million, which ARC can buy back for $5 million.
Virgo is 23km from Cupric Canyon Capital's Zone 5 development.
Kopore gained approval to drill two soil anomalies at Virgo in January 2020, but the declaration of a state of emergency last March stalled plans.
Kopore managing director Simon Jackson said ARC had people and infrastructure in southern Africa, which should enable it to unlock Virgo's potential more rapidly that Kopore could while COVID-19 affects global travel.
ARC and Kopore hope to close the deal within two months.
Kopore recently elected to earn-in to the Horseshoe Lights copper project in Western Australia, where it can earn a 75% interest by spending A$3 million over four years.
Jackson said Kopore's immediate focus was on drilling the new Bryah Basin asset, where it has defined a new geophysical anomaly adjacent to the historical high-grade Horseshoe Lights copper-gold mine, while continuing to reprocess historical data over 3600sq.km Ghanzi West project in Botswana.
Sandfire Resources' T3 copper-silver development is located between Virgo and Ghanzi West.
Kopore earlier sold its Namibian leases to Sandfire.
Kopore had $1.1 million cash at the start of the year.
Its shares were steady at 1.9c this morning, valuing it at $12.2 million.
