Kavango Resources PLC (LSE:KAV, OTC:KVGOF) said an independent valuation of its Kanye Resources assets has indicated they are worth US$8mln currently.
The junior recently took back 100% ownership of the Kanye joint venture and chief executive Ben Turney said the valuation “underlines the commercial rationale for the deal”.
Afrasia Mining and Energy conducted the assessment, which only valued the Kanye assets comprising 10 Prospecting Licences (PLs) in the Kalahari Copper Belt (KCB) and two PLs at Ditau.
Kavango's KSZ PLs and the LVR earn-in PLs were not included in the report
Kanye was previously owned 50/50 in a joint venture with Power Metal Resources, but Kavango has now agreed to buy out its partner in exchange for shares and warrants.
Turney added: “Afrasia has undertaken a detailed piece of work, which shows an established preferred valuation for Kanye of US$8.0mln.
“The valuation is based squarely on the current stage of our Kalahari Copper Belt and Ditau interests.
“This not only underlines the inherent value in our portfolio of our asset base versus the current market capitalisation of the company, but also highlights yet again the huge prospectivity of our licence area.”
Afrasia valued the assets of a combination of a market and cost approach.
A market estimate valued them at US$8.6mln, while the cost approach value was US$3.6mln to give a median value of US$6.23mln, which was then adjusted upwards.
The valuation report is available at https://www.kavangoresources.com/investor-relations/research-notes