Kavango Resources has signed an option agreement to acquire up to 51.15% of the issued share capital of Kalahari Key Mineral Exploration (KKME) from Power Metal Resources.
Under the exclusive three-month option, Kavango will acquire a stake in Kalahari Key, which has a 60% effective interest in prospecting licences PL310/2016, PL311/2016 and PL202/2018, collectively called the Molopo Farms Project (MFP), in Botswana.
Go deeper with GlobalData
Kavango will also undertake a work programme at the MFP, which will involve a moving soil geochemical analysis, loop survey, three-dimensional modelling and reinterpretation of gravity data. The work will be carried out at various targets of the project area.
Upon completion of the ownership restructure, Kavango will have a 51.15% stake in Kalahari Key while Power Metal will hold a 40% interest. The remaining 8.85% stake will be held by Evrima.
Kavango CEO Ben Turney said: “The next important element in our strategy is to have a pipeline of high-quality projects we can acquire or earn into. In this respect, Molopo Farms could be a perfect fit.
“The structure of the work programme option means we can immediately start moving the project forward, while also performing detailed due diligence.”
Covering a 1,723km² area, the MFP nickel/copper/platinum group elements (PGEs) exploration project holds exploration targets that lie under Kalahari Cover.
Power Metal Resources CEO Paul Johnson said: “It has been clear for some time that the ownership structure of Kalahari Key needed to be streamlined and that we needed to ensure a heightened level of operational efficiency on the ground in Botswana.
“Power Metal has an existing working relationship with Kavango in the Kanye Resources joint venture covering a number of projects in Botswana and we are confident that should Kavango exercise the option, we look forward to a positive working relationship with them as MFC Project partners going forward.”
Recently, India’s Jindal Steel & Power (JSPL) is reportedly looking to start construction on a mine in the Mmamabula coalfields, Botswana, next year.
The mine is expected to have a coal production capacity of 4.5 million tonnes per year.
