Kavango Resources plc announced it had signed a memorandum of understanding (MoU) to accelerate its 90% ownership of the copper-silver LVR joint venture (JV) in the Kalahari copper belt (KCB), Botswana.
LICENCES
The LVR GeoExplorers (Pty) Ltd JV comprises prospecting licences PL082/2018 and PL 083/2018 which cover 1,091km2 of prospective ground.
Kavango currently owns 25% and as operator is conducting field work across both licences.
Under the original terms of the LVR JV, the company had been earning into 90% ownership of the project, through a pre-agreed spending programme.
Kavango said that results from field exploration had increased the company’s confidence in the project, prompting its proposal to LVR to accelerate its 90% ownership.
TERMS
In return for Kavango’s immediate 90% stake in the LVR JV, the company will issue to LVR 2,000,000 ordinary shares at an issue price of 5.5p per share.
In addition, it will issue 2,000,000 warrants, exercisable at 8.5p per share for a period of two years.