The Zambian Minister of Mines has granted approval for the environmental-impact assessment (EIA), which sets the stage for a subsidiary of KoBold Metals to acquire a stake in Tertiary Minerals Zambia’s exploration license over the Konkola West Copper project.
Mwinilunga Exploration, the KoBold subsidiary, is slated to commence drilling activities on the license later in the current month.
The Konkola West project spans an area of 72 square kilometers and is situated 18 kilometers northwest of Chingola in the Central African Copperbelt.
This initiative focuses on targeting anticipated deep down-dip and along-strike extensions of three deposits – Lubambe, Mingomba, and Konkola – situated to the east of the license and extending northward into the Musoshi mining complex in the Democratic Republic of Congo.
Collectively, these deposits form a contiguous zone of mineralization stretching over 15 kilometers and boasting an endowment exceeding 775 million tonnes with grades ranging between 2% and 3% copper.
Konkola West, positioned approximately 2 kilometers southwest of the Mingomba deposit, carries historical resource estimates indicating nine million tonnes of contained copper.
Meanwhile, the Mingomba deposit lies between the Kokola and Lubambe mines.
KoBold, a U.S.-based company engaged in the exploration of critical metals, garners support from technology investors such as Breakthrough Energy – founded by Bill Gates – and institutional investors like the Canadian Pension Plan Investment Board.
Tertiary holds interests in five copper exploration projects in Zambia, including Konkola West.
Initially, KoBold aims to complete a minimum of two drill holes encompassing a total of 2,000 meters of drilling within 14 months of initiation. Upon completion, KoBold, Tertiary, and Tertiary’s project partner Mwashia Resources will establish a joint venture company to manage the license.
The initial ownership structure will allocate 51% to KoBold, 39% to Tertiary, and 10% to Mwashia. KoBold will carry Mwashia’s equity interest, which can be acquired by KoBold at any time for $3.5 million.
Tertiary reserves the right to contribute to the venture’s additional costs proportionate to its shareholding or risk dilution of its interests.
In the event that Tertiary’s interest diminishes to 10% in the venture, it will convert to a 1% net smelter return royalty payable over a 13-year period following the commencement of commercial production.
Both KoBold and Tertiary will make an initial payment of $30,000 to Mwashia. The existing option agreement between Tertiary and Mwashia for the Konkola West project has been nullified by the approval of the EIA.