Power Metal Resources PLC (LON:POW) said that final preparations for drilling on the Molopo Farms Complex project, which is partially controlled by the company, are now underway.
Power Metal Resources holds a 18.26% stake in Kalahari Key (KKME), which operates Molopo Farms, and has elected to earn-in to a 40% direct interest in the project by spending US$500,000 on exploration, notably target drilling, in 2020.
On completion of the earn-in Power Metal will have an effective economic interest of 50.96% in the MFC Project.
"KKME continue to make progress toward the objective of drilling major nickel sulphide targets in Botswana,” Power Metal’s chief executive Paul Johnson said in a statement.
“The team at KKME are continuing to work with the Botswana authorities to secure approval of the Environmental Management Plan, which is the final regulatory step before launch of the drill programme. As with many nations, Botswana has been managing the impact of Covid-19 and has taken a number of robust steps in this regard. We are optimistic with the measures taken and subject to regulatory approvals, the Molopo Farms Complex drill programme can commence in the near term,” he added.
The US$500,000 drilling cost is fully covered by the existing financial resources of Power Metal. As at today's date the cash and listed investments held by the company amount to £1.65mln.
The nickel price rose to a six-month high of just over US$6.50 per pound this week.