Kavango Resources has signed an option agreement to acquire up to 51.15% stake in the Molopo Farms project in Bostwana.

The Molopo Farms project comprises prospecting licences PL310/2016, PL311/2016 and PL202/2018, which are 60% owned by Kalahari Key Mineral Exploration (KKME).

London-listed metals exploration company Power Metal Resources has completed the earn-in to gain a 40% stake in the project.

Covering 1,723km2, Molopo Farms is a nickel-copper-platinum group elements exploration project located in southern Botswana.

Under the exclusive three-month option, Kavango will acquire a stake in the privately owned company Kalahari Key.

Kavango has gained the option in exchange for completion of a defined option exploration work programme funded by the company at the Molopo Farms project.

The programme will include a moving soil geochemical analysis, loop survey, three-dimensional modelling and reinterpretation of gravity data.

Kavango CEO Ben Turney said: “The next important element in our strategy is to have a pipeline of high-quality projects we can acquire or earn into. In this respect, Molopo Farms could be a perfect fit.

“The structure of the work programme option means we can immediately start moving the project forward, while also performing detailed due diligence.”

Currently, Evrima owns 15.43% of Kalahari Key.

Upon Kavango exercising its option, the capital structure of Kalahari Key is planned to be restructured.

The new ownership structure of Kalahari Key will include Kavango holding a 51.15% stake in the company, while Power Metal will own a 40% interest. Evrima will own the remaining 8.85% stake.

Power Metal Resources CEO Paul Johnson said: “It has been clear for some time that the ownership structure of Kalahari Key needed to be streamlined and that we needed to ensure a heightened level of operational efficiency on the ground in Botswana.

“Power Metal has an existing working relationship with Kavango in the Kanye Resources joint venture covering a number of projects in Botswana and we are confident that should Kavango exercise the option, we look forward to a positive working relationship with them as MFC Project partners going forward.”

In July this year, Power Metal exercised its option to acquire two gold-nickel exploration licences located within the Tati Greenstone Belt in Botswana