Power Metal Resources PLC (LON:POW) has said that Kalahari Key, a company in which it holds an 18.26% stake has received written confirmation that its environmental management plan for the Molopo Farms Complex (MFC) project has been approved by the relevant authorities in Botswana.
The approval represented the last formal regulatory step prior to drilling which is now set to commence imminently.
Power Metal has elected to earn-in to a 40% direct interest in the MFC project by expending 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.
“The receipt of EMP approval is a major step forward for Kalahari Key and Power Metal,” said Power Metals chief executive Paul Johnson in a statement.
“We have the funds reserved in a USD account to cover the cost of drilling and are working with Kalahari Key on finalising drill plans, with a view to mobilisation at the earliest opportunity. Power Metal has a diverse portfolio of interests, but undeniably the launch of a drill programme targeting prospective large-scale massive nickel sulphide mineralisation must be one the key moments in a junior exploration company's life cycle,” he added.