Investment in Kalahari Metals Limited
Metal Tiger announced that it has signed a binding Investment Agreement (the “Agreement”) to acquire up to 50% of Botswanan focused explorer Kalahari Metals Limited (“KML”). KML is a privately owned company and holds interests in seven highly prospective exploration licences covering 4,063km2 in the Kalahari Copper Belt, consisting of two 100% owned exploration licences and five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited (“Triprop”).
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“The signing of this deal with Kalahari Metals Limited follows 3 months of substantial corporate and technical due diligence and is a further exciting milestone in Metal Tiger’s continuing involvement in a world-class copper region in Botswana.
Metal Tiger has had a long focus on the exploration of the region and through its close partnership with MOD Resources Limited and its involvement with the seminal T3 deposit discovery, is able to bring exceptional strategic and technical expertise to create an exciting new joint venture with the experienced operational team at KML.
We look forward to updating shareholders in the near future with regards to KML’s proposed exploration plan. Based on our initial discussions, the key focus will be to conduct geophysics and soil geochemical surveys to identify high priority targets for drilling as well as commence work on the environmental management plans (‘EMPs’) for areas likely to be of interest for drilling in the near term.
The Board of Metal Tiger greatly looks forward to working with its new partners at KML and holds great belief in the potential of the Kalahari Copper Belt to develop into a world class economic copper district”.
Kalahari Metals Limited
KML’s license holding includes a significant land package in the Kalahari Copper Belt alongside major peers. License holding has been divided into two large projects, namely the: Okavango and Ngami Copper Projects.
- Sampling/drill testing has confirmed Cu-mineralisation in both project areas
- Projects situated along strike from code-compliant resources
- Over 500km of prospective mineralised strike with several priority areas identified
KML licenses in relation to MTR/MOD and Cupric Canyon
TMI image with license overlay illustrating the intersection of the Central Structural Corridor and dyke swarm
Exploration History and Discovery
Despite the 50 years of historical exploration, the Kalahari Copperbelt has only emerged as a world-class mineral province in the last decade.
Early exploration campaigns carried out by US Steel, AngloVaal, Anglo American and BHPB focussed primarily on identifying and delineating large, shallow, low-grade, stratabound Cu resources. From the early 2000s, exploration models changed with a greater emphasis on moderate-sized, higher-grade, structurally controlled targets which may be amenable to underground mining. This led to a number of discoveries which were largely attributed to the effective use of high resolution geophysics and better understanding of the geological and structural controls to mineralisation. Recent discoveries highlight the Belt as a significant emerging Cu district.
Feasibility studies on Cupric Canyon’s Zone 5 deposit (100.3 Mt @ 1.95 % Cu & 20 g/t Ag) and Mod Resources T3 deposit (36.0 Mt @ 1.14 % Cu & 12.8 g/t Ag) have now been completed with plans in place to commence production in late 2017 and 2019 respectively. Further expansion projects at Zone 5 are scheduled for 2019. Government plans are in place to develop infrastructure to connect the region to the power grid by 2019.
KML is a UK registered, base and precious metal explorer. The company focus is within the Kalahari Copper Belt where it has recently been awarded prospecting licenses and signed an earn-in agreement, securing over 4000km2 of exploration acreage in the Botswana portion of the KCB.
