Power Metal Resources PLC (AIM:POW) said it signed a conditional agreement to buy an additional 58.7% interest in Kalahari Key Mineral Exploration (Pty) Ltd for £807,348 in shares.
Kalahari Key has a single project 60% interest in the Molopo Farms Complex project (MFC) targeting a large-scale nickel-platinum group metal discovery in southwest Botswana.
Power Metal will buy the additional interest through the issue of 46.1mln new shares at a price of 1.75p each.
"We have today conditionally secured an increase to an 87.71% interest in Kalahari Key, which on completion will have a 100% ownership interest in the Molopo Farms Complex project in Botswana,” said Power Metal chief executive Paul Johnson in a statement late yesterday.
AIM-traded Power Metal will become operator of the MFC project with immediate effect and will look to accelerate exploration, including a next-stage drill programme.
“The MFC project delivered excellent initial drill results last year, which we now intend to follow up at some pace as the operator of the project,” said Johnson.
“Our target remains a large-scale nickel sulphide discovery and should we successfully move along that pathway, we are confident the MFC project will continue to draw interest from investors and potential operational partners."