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Kavango Resources PLC - London-based, Botswana-focused metals exploration company - Signs exclusive two year option to acquire a gold exploration project in Matabeleland, southern Zimbabwe. Kavango Resources says that the Nara project has 45 contiguous gold claims, and believes it has potential to host a bulk mineable gold deposit. Says the Nara Project has generated approximately 150,000 to 250,000 tonnes of tailings, which presents a separate opportunity for near-term revenue generation.
Kavango agrees to pay the current claims holder USD4.0 million cash, and have agreed to pay an option fee to them of up to USD220,000 over the 2-year option period, split into 4 individual payments of USD55,000 each payable at the start of each half year. Kavango says that it will commit USD1.0 million in spending on exploration at the Nara Project in the two years, with a minimum exploration spend of USD500,000 in the first year.
Chief Executive Officer Ben Turney said: "Zimbabwe has a strong tradition of mining. However exploration and investment has been severely limited over recent decades. We believe this presents a significant opportunity for Kavango and a commercial discovery."
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By Will Neill, Alliance News reporter
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