Kavango Resources PLC (LON:KAV) have told the market that they have signed a joint venture agreement for two licenses in Botswana.
The form said that the two prospective licenses are situated within the Botswana section of the Kalahari Copper Belt.
The copper miner said that the first licence is north of MOD Resources Ltd T3 mine development and is completely surrounded by MOD, Metal Tiger PLC (LON:MTR) and Sandfire Resources NL licences.
The second licence is closer to the Namibian border, which is south of the Trans-Kalahari highway.
The joint venture is with LVR Geo Explorers, and the deal will provide staged in for Kavango Resources. Additionally, this will give Kavango the chance to earn up to a 90% interest in both of one of the prospective licenses.
When the deal is formalized and completed, Kavango will be obliged to spend £92,000 on each of the licenses to acquire 25% stake in the projects.
Notably, this money will have to be paid within the first twelve months of signing the agreement.
There is also an option for Kavango to extend their interest by further expenditure across three stages, which will allow a total interest of 90%.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The signing of the JVA with LVR 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. Our exploration program will start shortly. We believe that the JVA with LVR represents excellent value for shareholders, who now have the prospect of acquiring an interest of up to 90% in these PLs. We will continue to consider other opportunities in this exciting copper province in the coming months.”
Kavango also noted that exploration of these licenses will commence shortly, and the firm will be the mangers of the exploration and development but will have the option to withdraw at any time following a two month notice period.
Shares in Kavango Resources trade at 1p (-10.91%). 17/2/20 16:19BST.
