17th Feb 2020 13:13
(Alliance News) - Kavango Resources PLC said Monday it has signed a joint venture agreement in respect to two prospecting licences situated in the Botswana section of the Kalahari Copper Belt.
Kavango shares were trading 13% lower in London at 1.20 pence each on Monday.
The mining exploration firm said the first licence lies north of MOD Resources Ltd T3 mine development and is completely surrounded by MOD, Metal Tiger PLC and Sandfire Resources NL licences.
Meanwhile, the other licence is close to the Namibian border south of the Trans-Kalahari highway and adjacent to a block of licences held by Kopore Metals Ltd.
The joint venture agreement is with Botswana registered company LVR GeoExplorers (Pty) Ltd and provides a staged earn-in, which will give the company the right to earn up to a 90% interest in both or either of the prospecting licences.
In the first 12 months following the signing of the agreement, Kavango will be obliged to spend GBP92,000 on each of the licences, to acquire a 25% interest.
The company's interest in either of the prospects can be extended by further expenditure in 3 stages to earn a maximum of 90%.
Kavango will be the managers of the exploration and development but will have the option to withdraw at any time following a two month notice period, the company said.
Michael Foster, chief executive officer, said: "The signing of the joint venture agreement with LVR represents an excellent opportunity for Kavango to acquire an interest in some highly prospective ground in the Kalahari Copper Belt area, which is now regarded as one of the world's most promising under-explored copper provinces."
By Loreta Juodagalvyte; [email protected]
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