Of the two coal prospecting licences, the Lokgwabe prospect, PL168/2010, spans 501.6 km2 and is located adjacent to the 4.2Bt Takatokwane Project.
The 932km2 second prospect, PL604/2009, lies adjacent to Rakops and is strategically placed to provide an energy source to the rapidly developing copper industry in Botswana.
Hodges Resources managing director Mark Major said the company believes that Botswana will be the next major African coal provider and will play an integral role in catering to southern Africa and the world’s burgeoning power needs, with the country already being on the radar of industrial groups out of India and China.
"Hodges has positioned itself to exploit the full potential of Botswana to develop as a market of regional significance," Major added.
An independent report by Analytika Holdings in May 2011, estimated potentially large coal tonnages between the two licences.
As per the latest agreement, Hodges can initially earn a 51% stake in the two licences by meeting $1m costs over the next two years.
Upon the completion of this expenditure, Hodges then has an exclusive five year right to complete a feasibility study to acquire an additional 29% interest in the prospects.
Hodges will also be the designated manager of the project expenditures and operations while an initial two stage drilling program is also planned for the Lokgwabe and Rakops prospects.
