Power Metal Resources PLC (AIM:POW) said Kavango Resources PLC (LSE:KAV, OTC:KVGOF)’s option to acquire up to 51.15% of the Molopo Farms complex, a nickel/copper/platinum group elements exploration project in southern Botswana, has been further extended.
Kavango's option is to acquire a stake in privately held Kalahari Key Mineral Exploration Pty Ltd (KKME), which currently has an effective 60% interest in the project after Power Metal acquired 40% via an earn-in last year. Evrima PLC, a shareholder in KKME, is expected to hold the remaining 8.85% of the project if Kavango's option is exercised.
Kavango’s original option was extended by four days, as announced last month, and the expiry date has now been extended to March 18 to allow further progress on a work programme being undertaken by Kavango. The work programme has already highlighted positive initial findings.
“Technical due diligence of the Molopo Farms project has revealed possible drill locations, which the company believes have potential to become high priority targets,” Kavango said in a separate statement. “Kavango requires additional time to complete further review of the data and operational planning.”