(Alliance News) - Kavango Resources PLC is partnering with underground mapping firm Spectral Geophysics to aid in the discovery of "world-class mineral deposits", it said on Tuesday.
The partnership will see Spectral map Kavango's Kalahari Suture Zone project in Botswana. In return for Spectral's surveying services, Kavango will issue it with 3 million Kavango shares at 3 pence per share and 3 million warrants kfor shares exercisable at 4.25p a share.
Kavango shares were up 5.2% to 3.26p each in London on Tuesday morning.
Kavango also said underground mapping had revealed a "promising" discovery at the northern Hukuntsi section of Kalahari Suture Zone project. Kavango Chief Executive Michael Foster said the firm was "encouraged to have identified a conductive body of this size", but further work was needed to confirm the finding. Spectral carried out the surveys at the site.
Commenting on the partnership, Foster said: "Spectral is now among the continent's leading specialists in ground-based EM surveys, having worked on projects in 18 countries for many of the world's largest mining firms.
"With Spectral's assistance and experience, Kavango will now be able to deploy more sophisticated methods and remote sensing technologies into the Kalahari Suture Zone. Following the success of the first two TDEM surveys we completed at Hukuntsi, this is a major step forward for Kavango and significantly bolsters our exploration capabilities."
By Will Paige; willpaige@alliancenews.com
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