(Alliance News) - Power Metal Resources PLC said Tuesday it has given written confirmation to Kalahari Key Mineral Exploration Pty Ltd of its intent to earn in to a 40% interest in the Molopo Farms Complex project in Botswana.
In order to earn in, the metals explorer must spend USD500,000 on the project to support the drilling of key targets in 2020 for nickel, copper and platinum group metals.
In addition to the potential 40% direct interest in the project, Power Metal currently holds an 18% stake in Kalahari Key Mineral. As a result, once the earn in is completed Power Metal will hold an economic interest of 51% in the Molopo Farms Complex.
Two Shields Investments, which holds an 18% stake in Kalahari Key Mineral and a 4.1% interest in Power Metal, noted the announcement.
"Progress achieved at the MFC project has been very encouraging in 2019, with the helicopter airborne electromagnetic work delivering 17 subsurface conductor targets and the ground geophysics highlighting 5 key targets for initial drilling," said Power Metal CEO Paul Johnson.
"In recent weeks we have held a number of meetings and discussions with the KKME team and there is clear and growing confidence in the potential of the MFC project for a nickel discovery. We are now working with the KKME team on preparations and options for an upcoming drill programme and will provide further updates to the market as material developments occur," Johnson added.
Shares in London-based Power Metal Resources were up 6.9% at 0.37 pence on Tuesday, while Two Shields Investments shares were 3.2% higher at 0.13p.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Power Metal (POW)