LONDON (Alliance News) - Mining company Metal Tiger PLC on Monday said Kalahari Metals Ltd has entered into an exclusivity period with Resource Exploration & Development Ltd to consider a potential acquisition of an additional five licenses in Botswana.
The new licenses include 4,661 square kilometres of permits, located in the Kalahari copper belt, which provides an opportunity for Kalahari Metals to expand its current land position in the region.
Back in June, Metal Tiger signed a binding investment deal to purchase up to 50% of Botswana-focused explorer Kalahari Metals for USD1.6 million. Kalahari Metals holds stakes in seven exploration licences covering the Kalahari Copper Belt.
At two of Kalahari Metals' target copper projects, the Okavango and Ngami copper projects, the company has completed magnetic and first phase electromagnetic airborne surveys.
Kalahari Metals collected a total of 16,700 square kilometres of high-resolution magnetic data over priority areas and expects to receive final processed survey results by the end of August.
Metal Tiger said magnetic data provides an essential base map for exploration under sand cover and has been used successfully by recent explorers elsewhere in the Kalahari copper belt. The company plans to use survey results to provide priority areas for follow-on drill testing.
"Work continues a pace and we look forward to receiving the processed first phase survey results and following on with the interpretation and prioritising of drill targets," said Metal Tiger Chief Executive Michael McNeilly.
Shares in Metal Tiger were trading 1.9% lower on Monday at 2.55 pence each.