Kavango Resources PLC (LSE:KAV, OTC:KVGOF) has abandoned its offer to acquire 100% of the issued share capital of Kalahari Key (KKME) just a day after making the propsoal.
“Despite the company's best efforts, it became apparent that there was insufficient agreement among the shareholders of KKME to justify incurring further time and expense with an uncertain outcome,” the junior said in a statement.
Kavango added it remains of the view that the Molopo Farms Complex Project (held by KKME) is a very attractive exploration opportunity.
Elsewhere, Kavango said it would now turn its attention to the Ditau Camp rare earths project, also in Botswana and a joint venture with Power Metal Resources PLC (AIM:POW).
Drilling here is ready to start with the 18 March the date pencilled in under the original plan, said the statement.
Kavango added it has mobilised a diamond rig to Ditau and a more detailed announcement outlining its key targets and drill plans will be released in the coming days.
Ben Turney, Kavango Resources’ chief executive, said: "I would like to thank the KKME team for their support and engagement in recent weeks.
“We wish them well with their future endeavours. Eleven of twelve shareholders agreed to the original offer Kavango made, but this was the kind of deal that would only work with unanimous approval.
He added that Ditau had been a longstanding project for the company.
"Advance preparations for rig mobilisation have progressed well. Construction work continued while discussions with KKME were ongoing.
“The campsite is ready to receive the rig and we've nearly completed construction of road access. The water borehole should be operational by the end of the month.
“With the rig now on its way, we will provide a more detailed drill plan for the potential carbonatite targets at this project, which can be a source of Rare Earth Elements, in the coming days."
Paul Johnson, at Power Metal, added: "I would have preferred to announce that the Kavango proposal to acquire Kalahari Key was proceeding with full Kalahari Key shareholder approval.
"Unfortunately, corporate activities don't always go according to expectations, particularly where ownership of a company is fragmented with varying minority interests.
"Turning to Ditau, I am extremely happy to see this drill programme launched, having followed the Ditau Camp project for years, I think we have real potential to make company changing discoveries."