MOD Resources has closed the acquisition of the remaining 30% interest in the T3 copper project, located in the central Kalahari Copper Belt in Botswana.

The acquisition brings MOD’s stake in the operation to 100% and is expected to provide the company development and project funding flexibility.

MOD signed the agreement in July this year to purchase the share from its joint venture (JV) partner Metal Tiger.

Under the terms of the deal, MOD issued around 17 million shares to Metal Tiger and 40.7 million unquoted options with a nil exercise price and expiring in three years.

With the completion of the transaction, Metal Tiger’s shareholding in MOD Resources stands at nearly 31.1 million shares, equivalent to a 12.5% stake.

Metal Tiger has the option to convert the options into one MOD share each, subject to the condition that the conversion does not result in the company owning more than 12.5% of MOD.

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The companies have also created a new JV Tshukudu Exploration, in which MOD and Metal Tiger own 70% and 30%, respectively.

“MOD has laid the foundations to grow into a mid-tier copper producer.”

MOD Resources managing director Julian Hanna said: “With full ownership of the T3 copper mine and processing plant, MOD has laid the foundations to grow into a mid-tier copper producer, centering its operations around the T3 hub in the central Kalahari Copper Belt.”

The company has also secured rights to acquire all other MOD/MTR JV exploration assets if they reach scoping study level, by November 2021.

Metal Tiger CEO Michael McNeilly said: “Through its increased interest in MOD and the New JV, the transaction places Metal Tiger in a strong position to benefit from the underexplored, district scale potential of the Kalahari Copper Belt.”

Last month, MOD secured extensions for JV prospecting licences covering the T3 project and surrounding 950km² T3 expansion project.