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(Alliance News) - Kavango Resources PLC on Friday said it regained full ownership of two projects in Botswana and reported the completion of diamond drill programme at its Ditau Camp project.
Kavango and Power Metal Resources PLC formed a joint venture, Kanye Resources, each comprising of 50% interest in the Ditau and Kalahari copper belt projects in southwestern Botswana.
Kavango now owns 100% working interests in 2 prospecting licenses in the Ditau Camp project, covering 1,386 kilometres; and 10 prospecting licenses in the Kalahari copper belt, covering 4,257 kilometres.
To settle the deal, Kavango has issued 60 million shares to Power at 3 pence each. Power will also receive 60 million warrants, with 30 million convertible at 4.25p, and the other half convertible at 5.5p.
Finally, Power Metal will receive a 1% net smelter return royalty across all the licence areas. It will also net a return should Kavango sell Kanye for over GBP7.5 million.
Shares in Kavango were down 11% at 1.79 pence each on Friday midday in London. Power was trading down 1.2% at 0.86p each.
Kavango Resources Chief Executive Ben Turney said: "Today's deal is a very important step forward for Kavango. 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 and at Ditau. On completion of the transaction, Kavango will become one of the largest landholders for copper exploration in Botswana."
Power Metal Chief Executive Paul Johnson added: "Our joint venture partnership with Kavango has continued for two years. In this time they have become, in our view, a Botswana junior resource powerhouse and with this transaction will see 100% ownership of their Botswana portfolio restored."
Turning to operational updates, Kavango said four holes have been successfully drilled at Ditau. The final drill report is currently being prepared.
On the Kalahari copper belt project, the company also saw "encouraging momentum".
Kavango CEO Turney added: "In the Kalahari copper belt we have built a head of steam in our exploration programme in the first half of 2022. The momentum is highly encouraging and we are quickly moving towards defining drill targets for a campaign later this year."
By Xindi Wei; xindiwei@alliancenews.com
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