Kavango Resources plc and strategic joint venture (SJV) partner Power Metal Resources plc have signed conditional agreements to acquire a 100% interest in eight licences in the Kalahari Copper Belt (KCB).
The move follows the 50-50 SJV’s creation of two new companies; Kanye Resources (Pty) Ltd (Kanye Botswana) which is wholly owned by Kanye Resources plc (Kanye plc) which is in turn due to be listed in London.
The partners’ projects include two prospecting licences at South Ghanzi covering 1,294 km2 targeting copper/silver discoveries; and two prospecting licences across 1,386 km2 at Ditau targeting rare earth element discoveries.
The two conditional agreements see Kanye Botswana acquiring a 100% interest in eight new prospecting licences (PLs) in the KCB.
The purchase includes four PLs, in proximity to Ghanzi in the central zone of the Botswana KCB, from Shongwe Resources (Pty) Ltd for US$200,000.
A further four PLs will be acquired near the town of Mamuno on the Namibian border for $230,000 from VinMarsh Interprises (Pty) Ltd.
Both transactions are subject to due diligence and approval of the Botswana authorities.
The two existing South Ghanzi PLs will be transferred from Kavango Minerals (Pty) Ltd to Kanye Botswana.
The cash consideration totalling $430,000 (£312,000) will be lodged in a nominated escrow account and released following completion of due diligence and licence transfer.
Following the transfer of all ten PLs, Kanye Botswana will control 4,255 km² of prospective exploration ground in the KCB, targeting the discovery of commercial copper/silver deposits.
The KCB stretches 1,000 km from northern Botswana to central Namibia and is prospective for copper-silver deposits.