Copper mining company Kavango Resources PLC (LON: KAV) has seen their share price rally duirng morning trading on Monday, following its signing of a Memorandum of Understanding with Botswana company LVR GeoExplorers, to farm two prospecting licences of the Botswana Kalahari Copper Belt.
Exploration of the two sites will commence within four weeks of the Farm-In Agreement. Kavango will act as the manager of the exploration and development of both sites, with the option to withdraw at any time, provided they give a two month notice period.
For the first 12 months following the signing of the Farm-In Agreement, the Company will have to spend BWP1.25m (around £92,000) on each licence to acquire a 25% interest – thos has already been allocated within their current budget. Their working interest in either or both licences can increase to 90% provided they take a project through to bankable feasibility.
Kavango Resources comments
Michael Foster, Chief Executive Officer, responded to the update,
“The signing of an MOU with LVR GeoExplorers represents an excellent opportunity for Kavango to acquire an interest in some highly prospective ground in the KCB area, which is now regarded as one of the world’s most promising under-explored copper provinces. We believe that the proposed Joint Venture with LVR represents excellent value for shareholders, who now have the prospect of acquiring an interest of up to 90% in these licences. We will continue to consider other opportunities in this exciting copper province, while our main focus remains the KSZ Project”.
Following the update, the Company’s shares rallied 10.83% or 0.18% to 1.88p a share 02/09/19 09:39 BST. The Company’s p/e ratio and dividend yield are unavailable, their market cap is £2.90 million.
Elsewhere in the mining and minerals sector, recent updates have come from; URU Metals Ltd (LON: URU), Resolute Mining Limited (LON: RSG), Bisichi Mining PLC (LON: BISI), Polymetal International Plc (LON: POLY) Cora Gold Ltd (LON: CORA), Glencore PLC (LON: GLEN) and Bushveld Minerals Limited (LON: BMN).