Strata Investment Holdings PLC (ASX:SRT) has welcomed an extension for Sandfire Resources of the Mining Licence for the Motheo Copper Mine in Botswana marking a major step forward in the Motheo Expansion Project.
Sandfire aims to kick off the development and mining of the A4 Deposit in September this year, expanding the mining footprint that currently encompasses the T3 Open Pit.
The expansion project will see processing capacity increase from the initial annual rate of 3.2 million tonnes to 5.2 million tonnes by the end of the December quarter.
The project’s design and procurement activities are significantly advanced with a subsequent ramp-up in throughput to the expanded rate expected to occur across the remainder of FY24.
"Pivotal stride forward"
Strata Investment Holdings, a key stakeholder in this venture, highlighted the importance of this milestone for its investment landscape.
CEO Michael McNeilly said: "We are thrilled by the progress achieved in our investment portfolio with Sandfire Resources' successful extension of the Mining Licence for the Motheo Copper Mine.
“This accomplishment marks a pivotal stride forward for the Motheo Expansion Project.
"Strata's involvement, particularly through our 2% uncapped Net Smelter Return (NSR) over the A4 Deposit, positions us at the forefront of this evolving copper district.
“The expansion's timeline, from the anticipated commencement of A4 Deposit operations in the September quarter of FY2024 to the substantial increase in processing capacity, demonstrates the project's dynamic momentum.
“We eagerly anticipate the continued advancement of this endeavour and the potential it holds for both Strata and Botswana.”
As of its last reported NTA of July 31, 2023, Strata held the NSR at a book value of A$21.2 million.