South32 Commits A$5M to Secure 60% Stake in Noronex’s Botswana Copper Project
Noronex Limited has secured a significant earn-in agreement with South32, enabling a A$5 million exploration program at the Cgae Cgae Copper Project in Botswana. This deal expands their strategic alliance and sets the stage for extensive drilling activity in the Kalahari Copper Belt.
- South32 to acquire 60% interest in Cgae Cgae Project via A$5M exploration spend over five years
- Noronex to manage exploration with a 3,000m RC drilling program starting late October
- Expansion of strategic alliance covering copper projects in Botswana and Namibia
- Combined quarterly funding of A$1 million committed for FY26 exploration activities
- Technical committee to oversee exploration programs and ensure strategic alignment
Strategic Partnership Deepens
Noronex Limited has taken a decisive step forward in its copper exploration ambitions by entering into an earn-in agreement with South32, a major player in the mining sector. This agreement grants South32 the right to acquire a 60% stake in Noronex’s Cgae Cgae Copper Project in Botswana by investing A$5 million in exploration over the next five years. The deal not only underscores South32’s confidence in the potential of the Kalahari Copper Belt but also solidifies Noronex’s position as a key explorer in this highly prospective region.
Exploration Plans and Operational Control
Under the terms of the agreement, Noronex will retain operational control, managing the exploration activities and charging a 7.5% operator fee. A 3,000-metre reverse circulation (RC) drilling program is slated to commence in late October, marking the first-ever drilling on the newly acquired tenements PL0074/2025 and PL0075/2025. This program aims to systematically test multiple copper targets, leveraging modern exploration techniques to unlock the project's potential.
Broader Strategic Alliance and Regional Synergies
The Cgae Cgae Earn-In Agreement complements an existing partnership between Noronex and South32, which includes a 7,000-metre drilling campaign at the neighbouring Powerline Project in Namibia. Together, these agreements ensure a robust exploration pipeline across the Kalahari Copper Belt, with a combined commitment of A$1 million per quarter in FY26 to fund drilling and related activities. This strategic alliance not only enhances resource discovery prospects but also fosters a collaborative approach to exploration in two countries with significant copper potential.
Management and Technical Oversight
To guide the exploration efforts, a Technical Committee comprising representatives from both companies will oversee the programs, ensuring that exploration strategies are aligned with best practices and market expectations. Noronex’s leadership, including Managing Director Victor Rajasooriar, expressed enthusiasm about the partnership, highlighting the value of South32’s technical and financial support in accelerating the search for major sedimentary copper deposits.
Looking Ahead
With drilling programs about to commence and a clear funding pathway established, Noronex is well-positioned to advance its copper projects in Botswana and Namibia. The success of these exploration activities could significantly enhance the company’s resource base and market standing, while also contributing to the broader development of the Kalahari Copper Belt as a premier copper province.
Bottom Line?
Noronex’s expanded partnership with South32 sets a promising stage for copper exploration, but the true test will be the results from upcoming drilling campaigns.
Questions in the middle?
- What initial results will the 3,000m RC drilling program at Cgae Cgae reveal about copper mineralisation?
- How will the combined exploration efforts in Botswana and Namibia influence Noronex’s resource estimates and valuation?
- What strategic moves might South32 pursue if early exploration targets prove highly prospective?
