Power Metal Resources has agreed to the conditional disposal of its 50% interest in the Kanye joint venture to its partner Kavango Resources.
Consideration for the disposal is £1.2mln, which will be paid for by the issue of 60mln new Kavango shares, 60mln warrants and royalty over the JV’s assets.
Paul Johnson, Power Metal’s chief executive, said: "The crystallisation of value from various Power Metal interests is a process we expect to continue. In doing so, we increase the financial strength of the company which will allow us to build a valuable and diverse portfolio of financial assets focused on the natural resource sector."
Kavango, which is the operator of the JV, added that Kanye owns 100% working interests in 10 prospecting licenses in the Kalahari Copper Belt, which cover 4,257km2, and two prospecting licences in the Ditau Camp project that cover an area of 1,386km2
"Today's deal is a very important step forward for Kavango," said Ben Turney, chief executive.
"After a period of considerable support from Power Metal Resources, we are now in a position to regain complete ownership of our crucial prospecting licences in the Kalahari Copper Belt (KCB) and at Ditau.
"On completion of the transaction, Kavango will become one of the largest landholders for copper exploration in Botswana,”