26th May 2020 12:41
(Alliance News) -Â Kavango Resources PLC on Tuesday reported a wider loss in 2019 due to an impairment.
The mining exploration firm's pretax loss widened to USD1.5 million in 2019 from USD534,242 the year before. This was largely due to a USD1.0 million impairment in 2019, with no such cost taken in 2018.
The impairment related to prospecting licenses that the directors have elected to relinquish. These licenses are located in the south of the Kalahari Suture Zone in Botswana, which the company has determined is "no longer an area of strategic focus" based on results to date.
Administrative expenses were reduced to USD472,049 in 2019 from USD534,242.
Chief Executive Michael Foster said the company looks forward to an "exciting programme of exploration" in 2020.
"Our mineral exploration activities on the Kalahari Suture Zone in the southwest of Botswana, where we have an area of 5,573 kilometres squared under licence, continue to show considerable potential for the discovery of world-class base metals deposits with the completion during the year of our initial drill campaign. In addition, we are nearing completion of our first farm-out by selling a 51% interest in the Ditau project. We have added to our mineral portfolio with our involvement on the exciting Kalahari Copper Belt where two new copper mines are now being developed," said Foster.
Kavango shares were untraded at 1.05 pence in London on Tuesday.
By Lucy Heming;Â [email protected]
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