Power Metal Resources plc has acquired a 50% interest in a 2,680 km2 strategic joint venture (SJV) portfolio of base and strategic metal project in Botswana.
The acquisition involves four Botswana prospecting licences previously 100% owned by Kavango Resources, and forms a new SJV between the companies.
Two prospecting licences for copper–silver cover 1,294.2km2 in the Kalahari Copper Belt (KCB) in central west Botswana, southwest of Sandfire Resources T3 and A4 Dome copper-silver discoveries.
Two further licences comprise the Ditau Camp project covering 1,386km2, which are prospective for rare earths in southwest Botswana
Power Metal will pay Kavango £75,000, six million new ordinary shares of 0.1 pence each in the company at a price of 1.25p each and five million Power Metal warrants at 2.0p with a two-year life to expiry and in the event of early exercise of 2.0p warrants, replacement warrants at 5.0p.
Power Metal will also fund the exploration with $150,000 over a two-year period for both the Ditau Camp and KCB projects. Any further costs will be met by Power Metal and Kavango.
The four project licences will be held in the new Botswana private holding company to be listed on a Canadian or UK stock exchange during 2021.
Power Metal chief executive Paul Johnson said the acquisition added further strategic metal projects to the company’s portfolio in a stable and supportive country.
The company other interest in Botswana is the large-scale Molopo Farms Complex project of nickel-platinum group discovery where a first drill programme is planned.
“We are keen to develop more insight into the potential of the Ditau Camp project, and this can only be achieved through proactive ground exploration which we intend to undertake with our JV partners, ” added Mr Johnson.
“The addition of two key Kalahari Copper Belt licences brings the company into a highly prospective copper territory which, as I have personally experienced, has the potential to deliver considerable discoveries.”
The new SJV will explore both the Ditau Camp and KCB projects before drilling begins.