Kavango Resources PLC (LSE:KAV, OTC:KVGOF) said it has acquired a further 65% of the LVR joint venture (JV), taking the Botswanan metals explorer’s holding to 90% in the JV where it remains the operator.
The LVR JV includes prospecting licences PL082/2018 & PL083/2018, which combined cover 809 square kilometres of ground highly prospective for copper/silver discoveries in the Kalahari Copper Belt.
In a statement, Ben Turney, Kavango chief executive, said: “PL082 is one of our most exciting and advanced opportunities. Located in the heart of the Belt, this licence has two primary target areas that have returned significant in-soil copper anomalies, with a peak pXRF value of 118.8ppm copper."
He added: “The Central Zone is 27km in strike length and the Northern Zone is 8km in strike, emphasising this project's scale. Meanwhile, PL083 is located near the Namibian border. Sand cover here has limited historic exploration, but with the strength of our in-house geophysics team we are working on some ground-breaking regional modelling that we expect to enable us to unlock previously unrecognised potential.”
Kavango said it will issue 2 mln if its ordinary shares to LVR at a price of 5.5p per share and 2 mln warrants, which are exercisable at 8.5p per share for two years.
The company noted that it will carry LVR’s 10% holding in the joint venture through to the Bankable Feasibility Study, while the terms of the acquisition, which are in the Memorandum of Understanding between Kavango and LVR that was entered into in November 2021, remain the same.
An application was made by both to the Department of Mineral Resources for the transfer of LVR JV prospecting licences to Shongwe Resources Ltd, a company which will be controlled by Kavango, it added.
Kavango shares jumped 6.0% higher to 1.78p in early deals on Friday morning.