Power Metal Resources PLC (LON:POW) and Kavango Resources PLC (LON:KAV) said they plan to list an existing joint venture in London after they signed agreements to buy eight prospecting licences in the highly prospective Kalahari Copper Belt (KCB) in Botswana.
Kanye Botswana, a local Botswana operating company to be wholly owned by Kanye Resources PLC, has agreed to buy the eight prospecting licences for a total US$430,000 (£312,000) in cash. Power Metal and Kavango will hold 50% of Kanye Resources, the listing vehicle, and have representative directors on the board and contribute to funding.
Under the agreement, Kanye Botswana will buy four licences, currently held by Shongwe Resources (Pty) Ltd, close to Ghanzi South in the central zone of the Botswana KCB for US$200,000 and four on the western end of the Botswana KCB held by Vinmarsh Interprises (Pty) Ltd for US$230,000.
Kanye Botswana already holds two prospecting licences on the South Ghanzi project and will seek to acquire additional exploration opportunities in the build up to listing.
"The conditional acquisitions announced today, subject to due diligence and approvals in Botswana, would significantly increase the footprint of Kanye Botswana in the Kalahari Copper Belt,” said Paul Johnson, chief executive of Power Metal. “The additional ground complements that already held and we believe will add material value to the investment proposition, in advance of the planned listing in London.”
“The collaboration with Kavango has so far seen material exploration success and now has delivered an opportunity, through the conditional acquisitions announced today, for the SJV [Strategic Joint Venture] to become an even more significant participant in the rapidly advancing Kalahari Copper Belt exploration story," he said.