Sandfire Resources (SFR.AX) is still looking for additional projects to boost its portfolio and development pipeline and has now entered into an agreement with Kopore Metals (KMT.AX) to acquire the latter’ Trans Kalahari Copper Namibia subsidiary for A$1M in cash and A$1M in Sandfire stock. Kopore will retain its other exploration licenses in Botswana. Kopore immediately sold the Sandfire shares for proceeds of just over A$1M.

As Kopore’s current market capitalization is just under A$4M, selling a property for a total consideration of A$2M is a good deal. Additionally, Kopore will receive a final payment from Sandfire Resources if the sold properties do contain a mineable copper reserve. If the reserve estimate comes in between 300-500,000 tonnes, Kopore will be entitled to a final cash payment of A$1.5M, while a reserve exceeding 500,000 tonnes will entitle Kopore to a final payment of A$3.5M.

Disclosure: The author has no position in Kopore or Sandfire. 

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