Kavango Resources PLC (LSE:KAV, OTC:KVGOF) has moved to simplify the ownership of the Molopo Farms project by making an offer to buy Kalahari Key, which has a 60% working interest in the nickel deposit in Botswana.
The provisional offer will replace the terms of an original plan for Kavango to increase its holding in Kalahari Key to 51.5% announced last November.
Ben Turney, Kavango Resources' CEO said: "This has been a complex transaction to close, dealing with a number of minority interests.
“A deal structure was agreed last week with eleven of KKME's twelve participating shareholders. Our new offer to KKME's shareholders is straightforward and reflects those terms.
“Molopo Farms has significant potential and Kavango has the team on the ground to accelerate exploration here rapidly. We have a drill rig ready to mobilise that we've waited long enough to deploy."
Power Metal Resources PLC (AIM:POW), which has a 40% stake in the Molopo project through its holding in Kalahari Key, reiterated it supports Kavango’s attempts to streamline ownership of the project.
Paul Johnson, Power Metal’s chief executive, added: “As previously stated Power Metal is supportive of Kavango's interest in Kalahari Key and remains so today.
“The Molopo Farms Complex Project has been notably successful, with nickel discovered in the first drill programme and it is time to get on with the job of exploration to take this project forward.
“To be clear, whilst selling Power Metal's shares in Kalahari Key should the above offer proceed, Power Metal would retain its separate 40% interest in the Molopo Farms Complex Project."