Power Metal Resources plc announced it had completed the earn-in to a 40% direct interest in the nickel sulphide and platinum group metals project at Molopo Farms Complex (MFC) in Botswana.
The miner’s agreement with Kalahari Key Mineral Exploration Pty Ltd began in 2019 based on Power Metals expending US$500,000 on exploration, notably drilling of key targets.
The payments started in October 2020 and the completion announced yesterday (22 April) sees Power Metal securing a 40% direct interest in the MFC project.
In addition, the company holds 18% of the issued share capital of Kalahari Key. Taken together the combined effective economic interest of Power Metal in the project is 50.8%.
Power Metal previously held an 18.26% equity interest in Kalahari Key. This percentage has been reduced to 18% following the exercise of 333 share options held by a Kalahari Key director at a total exercise cost of $19,880.
Power Metal has continued to hold 3,542 Kalahari Key shares throughout.
ASSAY RESULTS
On 8 April, significant assay results were announced for nickel, copper and zinc from the diamond drilling programme at the MFC project, with further results, tests and data expected.
“In a journey that began with our original agreement with Kalahari Key in May 2019, the MFC project has moved forward dramatically,” said Power Metal chief executive Paul Johnson who is also a director in Kalahari Key.
“We are seeking a world class nickel discovery and the findings so far have been extremely positive.
“It is therefore with some excitement that we announce completion of our $500,000 earn-in.
“Work continues at pace locally in Botswana and in the testing of samples in South Africa.”