(Alliance News) - Kavango Resources PLC on Monday said it has signed a deal with Global Exploration Technologies Ltd to acquire six new prospecting licenses.
Kavango shares rose 15% to 0.69 pence each on Monday morning in London.
The metals exploration company with assets in Botswana and Zimbabwe said it will purchase a 90% working interest in the licences, which are located in the Kalahari Copper Belt in Botswana.
Global Exploration is a subsidiary of Australian exploration firm ENRG Elements Ltd.
Kavango said the licences are adjacent to both its Karakubis Block near the Namibian border and its South Ghanzi block in the Kalahari belt, meaning that it will now hold a contiguous exploration area.
The firm said it intends to test licences in both the Karakubis block and the licence areas that are to be acquired, as it believes three of the licences could cover a single system containing domal structures, which are "key exploration targets in the search for large-scale copper/silver mineralisation".
Chief Executive Ben Turney said: "The new licences join up our Karakubis and South Ghanzi blocks, providing us with a contiguous, highly prospective system to explore along strike from major discoveries such as Sandfire Resources' T3 deposit and Khoemacau Copper Mining's Zone 5 deposit.
"We will push ahead in the [Kalahari Copper Belt], by reviewing exploration data for the new licence areas and the results of our recently completed IP surveys at the Karakubis project area. Our goal is to identify high-confidence drill targets to pursue in Q1 next year."
By Harvey Dorset, Alliance News reporter
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Kavango Resources (KAV)