Kavango Resources PLC (LSE:KAV, OTC:KVGOF) has announced that it has acquired an additional 65% of joint venture (JV) LVR, increasing the Botswana metals explorer’s stake to 90% in the JV of which it remains the operator.
The LVR joint venture comprises prospecting licenses PL082/2018 and PL083/2018, which together cover 809 square kilometers of highly prospective land for copper/silver discoveries in the Kalahari Copperbelt.
In a statement, Ben Turney, Managing Director of Kavango, said, “PL082 is one of our most exciting and advanced opportunities. Located in the heart of the belt, this license has two main target areas that returned significant copper anomalies in the ground, with a peak pXRF value of 118.8 ppm copper. »
He added, “The central zone is 27 km long and the northern zone is 8 km long, highlighting the scale of this project. Meanwhile, PL083 is located near the Namibian border. The sand cover here has limited historical exploration, but with the strength of our in-house geophysics team, we are working on groundbreaking regional modeling that we hope will allow us to unlock previously unrecognized potential.
Kavango announced that it would issue 2 million ordinary shares to LVR at a price of 5.5 pence per share and 2 million warrants, exercisable at 8.5 pence per share for two years.
The company said it would retain LVR’s 10% stake in the joint venture until a bankable feasibility study is completed, while the terms of the acquisition, which are set out in the memorandum of understanding between Kavango and LVR reached in November 2021, remain the same. same.
A request has been made by the two to the Department of Mineral Resources for the transfer of the LVR JV prospecting licenses to Shongwe Resources Ltd, a company which will be controlled by Kavango, he added.
Kavango shares jumped 6.0% to 1.78p in early trading on Friday morning.