Cobre (ASX:CBE) signed an earn-in agreement with a wholly-owned unit of BHP Group (ASX:BHP) for its Kitlanya East and Kitlanya West copper projects in Botswana, according to a Monday filing with the Australian bourse.

Under the agreement, BHP will fund up to $25 million for exploration costs for a right to earn a 75% interest in the projects, the filing said. The deal includes an initial commitment of $5 million within two years, with exploration set to start in April.

The copper and base metals explorer will remain the operator during the earn-in phase, receiving an annual management fee of no less than $250,000 and could receive up to $10 million upon declaring a maiden Joint Ore Reserves Committee-compliant resource at Kitlanya, per the filing.

Upon forming a joint venture, BHP may also provide a loan to fund Cobre's share of joint venture expenditures. If the transaction is terminated after BHP funds at least $20 million, BHP will receive a 2% net smelter royalty.

Cobre may buy back 50% of the royalty for the amount BHP has spent on exploration, the filing said.