Kobold wants to take the Konkola West project agreement to phase 2

Tertiary Minerals plc (TARGET: TYM) is pleased to announce that KoBold Metals Company (“KoBold”) has successfully completed its Phase 1 Earn-In requirements for the Konkola West Copper Project (“Project”) and has confirmed that it will proceed to Phase 2 under the Earn-In Agreement (“Agreement”) with cumulative exploration expenditures of up to US$6 million.

Highlights

• Completion of Phase 1 Earn-In requirements with 2 drill holes for a total of 4,153 m of drilling, significantly exceeding the minimum drilling requirement of 2,000 meters.
• A new joint venture is established.
• KoBold confirms its intention to proceed to Phase 2, which includes cumulative exploration expenditures of up to $6 million.
• KoBold is currently conducting a comprehensive analysis of the two holes completed to date. This work includes full geochemical analysis, downhole geophysics and stratigraphic interpretation, all of which will improve targeting for the next phase of exploration.
• Location and depth of the next borehole to be confirmed once all data from previous drilling has been assessed and incorporated into the updated exploration model.

Summary of drilling

Hole KWDD001

Hole KWDD001 was located in the northeast of the permit area and targeted downslope extensions of mineralization in the southwest Mingomba and Konkola Deeps (Figure 1). The borehole was drilled to a depth of 2,711 meters, but was terminated before reaching the target horizon (Ore Shale, Copperbelt Orebody Member) due to technical problems. KWDD001 is believed to be the deepest mineral exploration borehole ever drilled in the Zambian Copperbelt and marks a major industry milestone.

Hole KWDD002

Hole KWDD002 is located at the eastern end of the permit area and targets extensions of known mineralization to the southeast of the Konkola Mine (Figure 1). The borehole was drilled to a depth of 1,802 meters, but was recently stopped due to technical problems.

Despite the drilling difficulties, both drill holes provided valuable geological information that is now being incorporated into KoBold’s geological model for the Konkola region and will be used as part of the planning process for the Phase 2 drilling.

Earn-In Agreement

The Earn-In Agreement is between Tertiary Minerals (Zambia) Limited, its local partner, Mwashia Resources Limited, and Mwinilunga Exploration Limited, a subsidiary of KoBold.

Under the amended Earn-in Agreement, KoBold was required to drill two holes and drill a minimum of 2,000 meters within 24 months of signing the Earn-in Agreement (by December 19, 2025) to achieve Phase 1 Earn-In.

Following the completion of Phase 1 and after KoBold elects to proceed to Phase 2, a joint venture between Tertiary Minerals Zambia, Mwashia Resources Limited and Mwinilunga Exploration Limited will be formed, with the holdings in the joint venture being 39%, 51% and 10% respectively.

To meet Phase 2 requirements, KoBold must spend a cumulative amount of up to $6 million in exploration expenditures within a period of an additional 24 months. If these requirements are met, KoBold will increase its stake and the shares in the joint venture will then be: 20% Tertiary Minerals (Zambia) Ltd, 70% Mwinilunga Exploration Limited and 10% Mwashia Resources Limited.

In addition, a provision has been included in the Earn-In Agreement to ensure that KoBold’s newly granted adjacent major exploration license, 38615-HQ-LEL, will also be subject to the terms of the Earn-in Agreement for the benefit of all parties.

Richard Belcher, Managing Director of Tertiary Minerals plc, commented:

“We are pleased that KoBold has completed Phase 1 of the Earn-In Agreement requirements and has elected to proceed to Phase 2 despite the technical drilling challenges in this groundbreaking exploration program. This marks an important milestone not only for the project, but also for the collaboration between our respective companies with the establishment of a new joint venture. Such a move underlines the continued commitment and strategic importance of this project within the world-famous Central African Copperbelt.

“The continuation of exploration under the Earn-In Agreement provides Tertiary with a significant advantage for any future progress on the project, while mitigating the disadvantages in terms of risk and capital expenditure. The company looks forward to continuing this relationship and I look forward to providing further updates in due course.”

Mfikeyi Makayi, Managing Director of KoBold Metals Africa, noted:

“We have learned a lot from the first two holes drilled on the Konkola West property, which we will use when planning future work on the license area. We are pleased to have fulfilled Phase 1 of our Earn-In Agreement and look forward to continuing to work with Tertiary and Mwashia in Phase 2 of our Earn-In Agreement.”

Figure 1. Location map of the Konkola West Copper Project and collar position of the two boreholes.

Project summary

Konkola West (licenses 27067-HQ-LEL and 38615-HQ-LEL) is located approximately 5 km southwest of KoBold’s Mingomba deposit and 3 km southwest of the Konkola Deep Mine, which is part of the Lubambe-Mingomba-Konkola group of copper deposits of the Zambian Copperbelt. The aim of the drill program is to test the possible continuations of mineralization mined at the world-class Musoshi, Lubambe and Konkola mines (combined pre-mining capacity of over 775 million tonnes with a copper content of 2-3%). KoBold’s Mingomba project is one of the largest undeveloped copper deposits in the world, according to KoBold. KoBold uses its good AI-driven models of regional geology to support its targeted mineral exploration.

Further information:

Market Abuse Regulation

The information contained in this announcement is considered by the Company to be inside information as defined under the Market Abuse Regulation (EU) No 596/2014 as it forms part of UK domestic law under the European Union (Withdrawal) Act 2018 (‘MAR’). Following publication of this notice via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

Cautionary Statement Regarding Forward-Looking Statements

The press release may contain certain statements and expressions of belief, expectation or opinion that are forward-looking statements and that relate, among other things, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that may cause the Company’s actual performance or achievements to differ materially from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and, except as required by the AIM Corporate Rules or by law, the Company assumes no obligation to disseminate any updates or revisions to any such forward-looking statements.

Declaration of authorized persons

The technical information in this press release has been compiled and reviewed by Dr. Richard Belcher (CGeol, EurGeol), a qualified person for the purposes of the AIM Note for Mining and Oil & Gas Companies. Dr. Belcher is a Chartered Fellow of the Geological Society of London and holds the title of European Geologist with the European Federation of Geologists.

About Tertiary Minerals plc

Tertiary Minerals plc (AIM: TYM) is an AIM-traded mineral exploration and development company whose strategic focus is on energy transition metals. The company’s projects are all located in stable and democratic, geologically prospective, mining-friendly jurisdictions. Tertiary’s current principal activities are the discovery and development of mineral resources of copper and precious metals in Nevada and Zambia.

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