Copper and cobalt opportunities in UgandaFalconbridge, the...

Copper and cobalt opportunities in Uganda

Falconbridge, the Canadian-based metal company purchased by Xstrata in 2006, sold Kilembe to the Ugandan government during the political instability of the 1970’s. The operation has been closed ever since.

Between 1956 and 1977, the Kilembe mine produced more than 16 million tonnes of ore grading 1.98% copper and 0.17% cobalt.

Importantly, Jervois’ team is made up of former Xstrata/Glencore executives, including ex-Glencore executive Peter Johnston.

Jervois expects to benefit from M2 Cobalt’s established presence in Uganda, with the Vancouver-based company holding strong government and local stakeholder relationships.

From an exploration standpoint, Jervois highlighted the significant exploration potential along strike of the historical Kilembe mine.

M2 Cobalt also owns the Bujagali project in southern Uganda, which is prospective copper-cobalt. Jervois said the drill ready targets at Bujagali will be immediately funded by the convertible loan.

Commenting on the planned merger, Jervois said the agreement with M2 Cobalt came after it undertook a global search effort for attractive investment opportunities.

“Jervois has reviewed a significant number of investment opportunities in cobalt globally and is enthusiastic regarding the exploration potential of M2 Cobalt’s portfolio of tenements,” the company said.

“Uganda has a continuation of geological trends from neighbouring Democratic Republic of Congo, as well as a history of copper / cobalt production, but with greater political and regulatory stability.”

In addition to the exploration upside, Jervois’s foray into Uganda is set to complement its discussions with the government of Tanzania to win the giant Kabanga nickel-cobalt deposit.

Hopefully we land Kabanga and the next mining house will happen here.