Power Metal Resources plc has conditionally acquired additional interest to become the operator of the nickel sulphide-platinum group metals project at Molopo Farms Complex in Botswana.
RESTRUCTURE
The company purchased a further 58.7% in Kalahari Key Mineral Exploration Pty Ltd which holds a 60% interest in the project.
Power Metal will acquire a further 15,002 Kalahari Key shares for £807,348 payable through the issue of 46,134,171 new ordinary shares of 0.1 pence each in the company at 75p per new ordinary share.
Following completion and a restructuring of the project interest, Power Metal will hold 87.71% of Kalahari Key which will wholly own the project on completion.
This is an increase of approximately 35% from its current circa 53% effective economic interest.
As operator, the company looks to accelerate exploration including the next drill programme.
Two shareholders will retain their holding in Kalahari Key which, after completion, will amount to a combined 12.29% interest.
POTENTIAL
“The MFC project delivered excellent initial drill results last year, which we now intend to follow up at some pace as the operator of the project,” said chief executive Paul Johnson.
“Our target remains a large-scale nickel sulphide discovery and should we successfully move along that pathway, we are confident the MFC project will continue to draw interest from investors and potential operational partners.”
Kavango Resources plc previously planned to make a provisional offer for 100% of Kalahari Key but was unable to gain majority shareholder approval from Kalahari Key.