MTR.L Share News (MTR)

(Sharecast News) - Strategic natural resources investor Metal Tiger updated the market on its Kalahari Metals (KML) joint venture in Botswana on Friday, reporting that following its announcement on 20 August, KML had now completed due diligence and entered into an earn-in agreement with Resource Exploration and Development (RED).The AIM-traded firm said the agreement was for the acquisition of an interest in five recently-granted exploration licences with a total area of 4,661 square kilometres, in the "highly prospective" Kalahari Copper Belt.Under to the agreement, KML would acquire up to 25% of Kitlanya, RED's wholly-owned subsidiary that held the licences, for an immediate cash investment of $0.1m.KML would have the option to acquire the remaining 75% of Kitlanya by way of an issue of KML shares, at a value of $0.7m.The number of KML shares to be issued would be determined at the time of issue, and would be dependent on the valuation of KML at that time, among other things, the board explained.It said the agreement more than doubled KML's exploration interests from 4,063 square kilometres to 8,724 square kilometres.The RED Licences formed two contiguous groups, with the first being Kitlanya East, which consisted of three licences located immediately south of MOD Resources' T3 Deposit and Cupric Canyon Capital's Chalcocite Zone deposit.Kitlanya West, the other group, consisted of two licences located along strike of KML's Ngwako Copper Project, and abutted the Namibian border on the northern limb of the Kalahari copper belt.Metal Tiger said Kitlanya East would target mineralised redox boundaries proximal to basin boundaries, and basement horst blocks, which were interpreted to extend through the project area.Soil cover was described as thin, and a first phase soil sampling programme was scheduled to commence immediately.Kitlanya West had the potential for copper related to structural domes interpreted from historical airborne electromagnetic geophysics survey data, the company explained.Those domes would be similar targets to some providing "exciting" copper intersections in the MTR/MOD joint venture areas, Metal Tiger said.Regional AEM geophysics test lines were planned to be flown over the PL070-072/2017 Kitlanya East permits during the initial soil sampling programme, in order to help identify drilling targets for 2019."We are pleased to announce the agreement to significantly increase KML's exploration interests in Botswana," said Metal Tiger chief executive Michael McNeilly."The earn-in agreement between KML and RED substantially increases Metal Tiger's exposure to highly prospective ground within the Kalahari Copper Belt, which across the separate KML and MOD joint ventures covers an area of around 16,000 square kilometres, an equivalent area to over three quarters the size of Wales."McNeilly said that, with the regional soil sampling programme due to commence immediately over Kitlanya East, and airborne geophysics being planned, the company was "looking forward" to keeping shareholders updated on KML's progress."We commend our KML partners for securing this deal."