Kavango Resources PLC (LON:KAV) has signed a memorandum of understanding with LVR GeoExplorers to farm into two prospecting licences in the Botswana section of the Kalahari copper belt.
Under the terms of the farm-in deal, Kavango will have the right to earn up to a 90% interest in both or either of the licences.
In the first 12 months following the signing of the agreement, Kavango will be obliged to spend BWP1.25m, or around £92,000, on each of the licences to acquire a 25% interest.
This money has already been allocated within the current budget.
Kavango can then earn a 90% interest in either licence by taking it through to bankable feasibility.
Kavango will be managers of the exploration and development but will be allowed to withdraw at any time following a two month notice period.
One of the licences is 30 kilometres north of MOD's T3 mine development and is completely surrounded by MOD and Metal Tiger exploration licences.
The other is close to the Namibian border south of the Trans-Kalahari Highway and adjacent to the block of licences held by Kapore Metals Limited.
Exploration of these licences will commence within four weeks.