Kavango Resources plc, the exploration company targeting the discovery of mineral deposits in Botswana, has announced to have entered a three-month option to acquire 85.23% of Kalahari Key Mineral Exploration Proprietary Ltd (KKME) in a proposed all share-transaction
Kavango can exercise the option at its sole discretion.
KKME is a privately owned company, currently owning 100% of prospecting licences PL310/2016, PL311/2016 and PL202/2018, collectively known as the Molopo Farms Project (MFP) - a nickel/copper/platinum group elements (PGEs) exploration project in southern Botswana. KKME holds no other interests and is debt free. Power Metal Resources plc has an effective 40% project in the MFP, which it will convert into equity on a pro-rated basis in KKME should the proposed acquisition complete.
Following the proposed acquisition, Kavango would hold an interest of between 50.74% and 51.15% in KKME, Evrima Plc would hold between 9.26% and 8.86% of KKME and Power Metal would own the remaining 40%. Power Metal and Evrima intend to retain their shares in KKME and will continue as project partners. Kavango would be the operator.
Rather than pay an option fee, Kavango will complete a work programme on the MFP. This will enable the company to complete technical due diligence, including fieldwork, prior to deciding whether to exercise the option. As part of the work programme, Kavango will perform a review of all geological and geophysical data gathered from previous exploration of the MFP.
Ben Turney, CEO of Kavango Resources, commented: “Our vision is to build a world-class minerals exploration firm in Botswana. Our business model is based on making multiple, large scale metal discoveries, which we can sell to major international mining firms.”
