Kavango Resources has signed an option agreement with Power Metal Resources to purchase up to 51.15 per cent of the issued share capital of Kalahari Key Mineral Exploration (KKME).
Kavango will acquire a 60 per cent effective interest in prospecting licences PL310/2016, PL311/2016, and PL202/2018, collectively known as the Molopo Farms Project (MFP), in Botswana, under the exclusive three-month option.
At the MFP, Kavango will also carry out a work program that includes a moving soil geochemical analysis, loop survey, three-dimensional modelling, and gravity data reinterpretation. The work will be carried out at several project-related targets.
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 several 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.