London based mineral exploration company to acquire Botswana project operator
Kavango Resources PLC, the exploration company targeting the discovery of mineral deposits in Botswana, has entered an exclusive, three month option to acquire 85.23 per cent of Kalahari Key Mineral Exploration Proprietary Limited (KKME).
KKME is a privately owned company, which currently owns 100 per cent of prospecting licences PL310/2016, PL311/2016 and PL202/2018 in Botswana, collectively known as the “Molopo Farms Project”.
Power Metal Resources PLC has an effective 40 per cent project in the MFP, which it will convert into equity on a prorated basis in KKME should the proposed acquisition complete.
Following the proposed acquisition, Kavango would hold an interest of between 50.74 per cent and 51.15 per cent in KKME, while shareholder Evrima PLC would hold between 9.26 per cent and 8.86 per cent of KKME. Power Metal would own the remaining 40 per cent.
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.
“Over the course of this year we’ve recruited senior technical staff, deployed the latest technologies into the field, invested heavily in our local operations and significantly increased exploration activity. The Kavango team has now put in place a strong foundation, upon which we can confidently grow the company.”
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