Kavango drops Molopo nickel to focus on Ditau rare earths

Kavango Resources plc said that, due to insufficient shareholder agreement, it had cancelled its acquisition plans for the Molopo Farms Complex nickel project in Botswana.

OFFER

To avoid further delays and costs, Kavango has turned its focus on the Ditau rare earth elements project.

Yesterday, the company said it planned to make a provisional offer for 100% of the project owner Kalahari Key Mineral Exploration Proprietary Ltd.

The company had agreement from eleven of the twelve shareholders but needed unanimous approval.

Kavango today said it still considered Molopo as a “very attractive exploration opportunity” and had kept “the door open” to negotiations.

DITAU CAMP

Chief executive Ben Turney added that the company was ready to drill key targets at the Ditau Camp project.

Site preparation has been underway since mid-February with camp clearance, pad preparation and road access construction nearing completion.

Kavango has also engaged a water drill contractor to provide a reliable source of water for drilling operations.

DRILL RIG

“Ditau has been a longstanding project for the company,” added Mr Turney.

“We have accumulated a considerable amount of technical exploration data leading to this drill programme.

“With the rig now on its way, we will provide a more detailed drill plan for the potential carbonatite targets at this project, which can be a source of rare earth elements, in the coming days.”