BCL has been placed in provisional liquidation.
At this stage no formal advice has been received from BCL but under the farm-in joint venture agreement if a party becomes insolvent, including being placed in provision liquidation, the solvent party may terminate the agreement.
Botswana Metals will continue with its current lithium and tantalum exploration program still in progress, which includes mapping and soil sampling.
The Dibete copper-silver discovery is located in Botswana and features intersections of up to 38 metres at 1.79% copper and 119 g/t silver.
The prospect has a potential 3.5-kilometre strike and hosts a 1.2x1.2 kilometre induced polarisation (IP) anomaly.
Drilling highlights include:
- 38 metres at 1.72% copper and 119.5 g/t silver including 10 metres at 2.33% copper and 126.5 g/t silver, 8 metres at 3.86% copper and 364.1 g/t silver and 3 metres at 9.16 % copper and 894 g/t silver;
- 18 metres at 1.99% copper and 98.4 g/t silver including 10 metres at 3.11% copper and 163.0 g/t silver;
- 18 metres at 1.78% copper and 28.9 g/t silver;
- 17 metres at 2.7% copper and 40.5 g/t silver from 16 metres;
- 12 metres at 1.8% copper and 42 g/t silver from 33 metres;
- 11 metres at 4.5% copper and 229.9 g/t silver from 33 metres;
- 10 metres at 3.9% copper and 110 g/t silver from 43 metres;
- 9 metres at 2.8% copper and 87.3 g/t silver from 33 metres; and
- 6 metres at 2.3% copper and 117 g/t silver from 34 metres.
Airstrip is a copper-silver discovery that sits within a 3.5x3.5 kilometre soil anomaly.
An IP survey of 1.5x1.5 kilometres revealed 17 conductors, 13 of which have been drilled and intersected mineralisation.
It is yielded grades of up to 60% copper and 2833 g/t silver.
Lithium and tantalum exploration
During September, Botswana Metals was granted three new Prospecting Licences to explore for metals in the Limpopo Mobile Zone in Botswana.
The licences are prospective for base and precious metals including nickel, copper, gold, silver, tantalum and lithium in pegmatites, and are issued for a first term of three years and can be renewed on 30 September 2019.
The Limpopo Mobile Belt contains similar Archean rocks to those that host one of the world largest Lithium-Caesium-Tantalum (LCT) deposits in neighbouring Zimbabwe.
Background to joint venture agreement
On 27 June 2016 the company announced that, subject to formal documentation, BCL could earn a 40% interest in PL 110/94, PL 111/94 and PL 54/98 (“the three PLs”).
At this stage no formal advice has been received from BCL regarding the earning of an interest in the three PLs.
Under the farm-in joint venture agreement if a party becomes insolvent (including being placed in provisional liquidation) then:
(a) during the earning period (until a party has formally earned its interest) the solvent party may terminate the farm-in by notice to the insolvent party;
(b) if a participant has earned its interest then:
(i) the solvent party may compulsorily acquire the interest of the insolvent party at an agreed price or, if a price cannot be agreed, at a price recommended by a qualified person as the fair market value of the interest; or
(ii) if there is no acquisition of the insolvent party’s interest, the joint venture can be terminated and the assets are to be realised and the net proceeds, after paying any liabilities of the joint venture, are to be distributed to the participants in proportion to their interests.