Power Metal Resources PLC (AIM:POW, FRA:2M5) exercised its option to acquire two gold-nickel exploration licences in the Tati Greenstone Belt, near Francistown in Botswana.
"Francistown and its surrounding area were the site of the first South African gold rush in the nineteenth century, and have not had extensive modern exploration,” said chief executive Paul Johnson.
“The company's due diligence review of historic data identified numerous multi kilometre-scale nickel, arsenic and gold anomalies, which are now the subject of an ongoing Phase I exploration programme which includes detailed geochemical sampling, mapping and prospecting.
“We consider that the Tati project is highly prospective and has the potential to deliver major gold and nickel discoveries, and on that basis we have exercised our option to acquire a 100% interest in the project,” he said.
The AIM-listed company said the goal of the Phase I work programme is to further develop some of the high-priority exploration targets which it then plans to drill test later in the year.
An option fee of £50,000 in cash has been paid to vendor Vital Commodities, owned by Guernsey-based Equity Drilling Ltd.