Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) is pleased to announce completion of the acquisition of 65pc of the LVR Joint Venture (the “LVR JV”) (the “Acquisition”). This takes Kavango’s holding in the LVR JV to 90pc.
The LVR JV incorporates prospecting licences PL082/2018 & PL 083/2018, which together cover 809km2 of ground highly prospective for copper/silver discoveries in the Kalahari Copper Belt (“KCB”).
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“As we move towards our maiden drill campaign in the Kalahari Copper Belt, completing the acquisition of 90 per cent of the LVR Joint Venture is an important step forward. The two prospecting licences in this vehicle are highly prospective for copper/silver exploration.
PL082 is one of our most exciting and advanced opportunities. Located in the heart of the Belt, this licence has two primary target areas that have returned significant in-soil copper anomalies, with a peak pXRF value of 118.8ppm copper. The Central Zone is 27km in strike length and the Northern Zone is 8km in strike, emphasising this project’s scale.
Meanwhile, PL083 is located near the Namibian border. Sand cover here has limited historic exploration, but with the strength of our in-house geophysics team we are working on some ground-breaking regional modelling that we expect to enable us to unlock previously unrecognised potential.
We look forward to commencing drilling here in the near future.”
Kavango Resources plc and its Botswana subsidiary Kavango Minerals (Pty) Ltd (together “Kavango”) have executed a sale purchase agreement (“SPA”) with LVR GeoExplorers (Pty) Ltd (“LVR”) to acquire a further 65pc in the LVR JV. Kavango had already earned into 25pc of the LVR JV ( announced >>> 03 June 2021 ).
Kavango entered into an Memorandum of Understanding (“MoU”) with LVR in November 2021 ( announced >>> 26 November 2021 ), which outlined the terms of the Acquisition. These remain the same.
As a result of signing Kavango now owns 90pc of the LVR JV and remains as operator.
The LVR JV includes the following prospecting licences:
Application has been made by both parties to the Department of Mineral Resources for transfer of the LVR JV prospecting licences to Shongwe Resources (Proprietary) Ltd. (“Shongwe”), a company which will be controlled by Kavango. On completion of this, Kavango will issue shares to LVR as detailed below.
Kavango will issue to LVR 2,000,000 Ordinary Shares (at an issue price of 5.5p per share) and 2,000,000 warrants, exercisable at 8.5p per share for a period of two years (the “Warrants”). No royalty or other deferred payment to LVR is required to be made by Kavango.
Kavango will carry LVR’s 10pc holding in the LVR JV through to Bankable Feasibility Study (“BFS”). Beyond this, LVR are to contribute on a pro-rata basis or will be diluted.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
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