Power Metal Resources PLC (AIM:POW) has welcomed a simplification of the ownership structure of Kalahari Key Mineral Exploration, in which it has a large stake.
Kavango Resources PLC (LSE:KAV, OTC:KVGOF) has been granted a three-month option to acquire up to 51.15% of the issued share capital of Kalahari Key, which currently has an effective 60% interest in the Molopo Farms Complex (MFC) Project after Power Metal completed the earn-in to an effective 40% direct interest in the project.
Should Kavango exercise the option it will acquire the majority of Kalahari Key shares in issue including the 5,313 shares currently held by Power Metal, but excluding the 3,802 shares held by Evrima PLC.
If it pulls the trigger, that would leave the following state of play concerning equity stakes in Kalahari:
- Kavango Resources 51.15%
- Power Metal 40.00%
- Evrima 8.85%.
“Power Metal has an existing working relationship with Kavango in the Kanye Resources joint venture covering a number of projects in Botswana and we are confident that should Kavango exercise the option, we look forward to a positive working relationship with them as MFC Project partners,” said Paul Johnson, the chief executive officer of Power Metal Resources.
“Notably the option fee is covered by an immediate option work programme that will provide valuable additional information about the MFC Project and whatever the option outcome will move the project considerably forward from a technical perspective.
“We believe that the MFC Project is a considerable opportunity based on real world evidence already secured from project exploration to date, including assay samples of up to 1.7% nickel sulphides in the second drill hole, KKME1-6. Now is the time to accelerate the MFC Project and we look forward to getting on with that,” Johnson said.