Kanye Resources fully owns 10 licenses in the Kalahari Copper Belt (KCB) covering an area of 4,257km², and two prospecting licences in the Ditau Camp project, covering an area of 1,386km²
Kavango to gain full ownership of Kanye JV. (Credit: omid roshan on Unsplash)
Kavango Resources has signed an agreement with its partner Power Metal Resources to acquire the latter’s 50% in their joint venture (JV) company Kanye Resources.
Kanye fully owns 10 prospecting licenses in the Kalahari Copper Belt (KCB), and two prospecting licences in the Ditau Camp project, in Botswana.
Under the terms of the agreement, Kavango would obtain complete ownership of the JV, including licenses covering an area of 4,257km2 in KCB, and 1,386km2 in Ditau.
Kavango will issue 60 million shares to Power at a price of 3p each, where Power can convert half of the warrants at 4.25p each, and the remaining at 5.5p each.
Power Metal is eligible to receive a 1% net smelter return (NSR) royalty across all the licence areas, included in the transaction.
In addition, Kavango agreed that if it divests completely or a part of Kanye for more than £7.5m, Power Metal will be paid a proportion of the consideration in excess of £7.5m.
Kavango Resources chief executive officer Ben Turney said: “After a period of considerable support from Power Metal Resources, we are now in a position to regain complete ownership of our crucial prospecting licences in the Kalahari Copper Belt (KCB) and at Ditau.
“On completion of the transaction, Kavango will become one of the largest landholders for copper exploration in Botswana.
“The Strategic Joint Venture has served both Kavango and Power well. It has demonstrated the success of Power’s incubation model in the exploration space, while has provided Kavango with innovative and effective financing to develop its projects more quickly.”
Kavango said that the transaction will significantly strengthen its commercial operations, and add a strategic investor to its shareholder register.
In addition, the deal has enabled it to drill the recent campaign at Ditau and bring its interests in the KCB to drill readiness, said the company.
Kavango claims that it currently controls nearly 16,000km² of the prospective area in Botswana.
In a separate development, Kavango has identified a cluster of three electromagnetic conductors within its Kalahari Suture Zone project in Botswana.
The new cluster electromagnetic conductors are located within the Target Area B in the northern Hukuntsi section of the Kalahari Suture Zone project.