Kavango Resources plc (LSE:KAV) has expanded its presence in Botswana’s Kalahari Copper Belt (KCB) through an agreement with Global Exploration Technologies (Pty) Limited (GET), a subsidiary of ENRG Elements (ASX:ENRG), to acquire a 90% working interest in six Prospecting Licences, bolstering its ongoing copper and silver exploration program and solidifying its commitment to tapping into the region’s mineral potential.
Figure 1: Map of Kavango’s KCB landholding
Expanding the Kalahari Copper Belt Footprint
Kavango Resources’ agreement with Global Exploration Technologies (Pty) Limited (GET) is a milestone moment for the Company, with this acquisition not only adding valuable assets to Kavango’s portfolio but also strengthening its position in the KCB.
The Prospecting Licenses in question are strategically located adjacent to Kavango’s existing Karakubis Block and South Ghanzi block, creating a contiguous project area that offers exciting exploration opportunities.
Of particular significance are PL049/2020 and PL052/2020, located within the Karakubis Block, along with PL203/2016 (soon to be acquired). These Prospecting Licences are believed to encompass a unified regional system characterised by valuable domal structures, which are coveted exploration targets in the pursuit of substantial copper and silver mineralisation.
Acquisition Terms and Financing Update
Kavango’s agreement to acquire these Prospecting Licenses involves acquiring 90 per cent of the issued shares of Icon Trading Ltd and Ashmead Holdings Ltd, both subsidiaries of GET.
This acquisition is subject to certain conditions, including receiving necessary permissions in Botswana after October 30, 2023. Kavango will pay a total of $2.5 million in cash in three installments, further solidifying its commitment to this strategic expansion.
In terms of financing, Kavango is in the final stages of securing Stage 2 financing with Purebond. This financing, initially announced in May 2023, will provide the Company with £4.6 million at 1p per share. Should there be any delays in completing this financing, Purebond is prepared to provide the necessary funds to ensure the successful completion of the acquisition.
Scientific Exploration Advancements
Kavango Resources is actively advancing its exploration efforts in the KCB through data-driven initiatives.
Recently, the Company conducted a 30-kilometre Induced Polarisation (IP) survey, collaborating with industry expert David Catterall and its new Exploration Manager for Botswana, Mr. Leon de Waal. This survey aims to enhance data coverage across Kavango’s KCB holdings, providing critical geological insights.
Additionally, Kavango is focused on identifying sulphide deposits with mineralisation potential, crucial for future drilling plans.
Kavango Resources Chief Executive Officer Ben Turney expressed his optimism about this development.
“The new licenses join up our Karakubis and South Ghanzi blocks, providing us with a contiguous, highly prospective system to explore along strike from major discoveries such as Sandfire Resources’ T3 deposit and Khoemacau Copper Mining’s Zone 5 deposit,” he said.
“We now have uninterrupted control of the single system in this portion of the Kalahari Copper Belt. We believe today’s acquisition significantly increases our chances of making a discovery here.”
“We will push ahead in the KCB, by reviewing exploration data for the new licence areas and the results of our recently completed IP surveys at the Karakubis project area. Our goal is to identify high-confidence drill targets to pursue in Q1 next year.”
“With completion of the Purebond financing imminent, we are in an extremely strong position to execute our ambitious plans.”
KAV’s London Stock Exchange-listed share price has risen 21.65% per cent over the past 5 days and is currently selling at 0.74 pence (9:45 am UTC+ 8 hours).