LONDON: African Battery Metals plc, the AIM listed battery metal exploration and development company, has entered into a Share Acquisition and Earn-in Agreement in respect of a nickel – PGM (platinum group metals) opportunity in Botswana.[the_ad id=”31605″]African Battery Metals (ABM) has acquired an 18.26% stake in Kalahari Key Mineral Exploration, a Botswana registered exploration company with a 100% interest in the Molopo Farms Complex (MFC) Project in south west Botswana for a total consideration of US$194,810;
In addition, ABM may at its sole discretion and by 31 December 2019, elect to earn-in to a 40% direct project interest in the MFC Project, by expending US$500,000 by 31 December 2020 on ground exploration at the Project, expected to include drilling of high priority targets;
Upon completion of the Earn-in expenditure requirement, ABM will hold a total economic interest of 50.96% in the MFC Project through its 18.26% shareholding in Kalahari Key and 40% direct interest in the MFC Project and will have representation on the MFC Project operating committee and the Kalahari Key board;
The MFC Project comprises three exploration licences, covering 2,725 square kilometres which are believed to be prospective for nickel, PGM and copper mineralisation;
Alongside the acquisition of all historic exploration data, Kalahari Key has recently undertaken a high-resolution, helicopter-borne electromagnetic and magnetic survey using New Resolution Geophysics’ Xcite System™;
The airborne geophysics undertaken in the Survey has identified 17 key zones where the conductivity of the rocks is of interest and Kalahari Key is reviewing this data and constructing a priority list of targets for ground exploration follow up.
Andrew Bell, Chairman of African Battery Metals, comments: “I am delighted to secure this new Botswana opportunity for African Battery Metal shareholders. Botswana is an exceptional country with exciting exploration opportunities and a superb operating environment.
This significant opportunity comes to us after the MFC Project has already benefitted from extensive historical exploration that has already identified 17 targets through Airborne Electomagnetic Surveys.
There is some further Airborne Electromagnetic work to do, with ground exploration follow up and ongoing target prioritisation. However, the ultimate key to unlocking the value from exploration targets under sand cover is via the drill rig and we will be working with Kalahari Key to identify the quickest route to active drilling operations.
The Board considers this investment consistent with its stated policy of seeking battery metal exposure in Africa and believes that further exploration success at the MFC Project would by virtue of the potential scale have a transformative impact on the prospects of ABM and on investor sentiment towards it.
I am delighted to be working with the Kalahari Key team and would like to emphasise the diligent work they have done to bring the MFC Project to its current position.
These are exciting times and we anticipate further updates in respect of Botswana and our other business interests in the near future.”
Dr Roger Key, CEO of Kalahari Key, comments: “Kalahari Key is very pleased to have reached this agreement with African Battery Metals and we look forward to a productive partnership.
The work done on the MFC Project so far has reinforced our belief that we have a significant resource with a geological model analogous to Voisey Bay. We welcome the financial input from ABM that will enable us to move quickly into a drilling phase, and we also appreciate the management and organisational benefits that come from a close working relationship with ABM.”
Kalahari Key Mineral Exploration Company (Pty) Ltd, registered in Botswana, is a mineral exploration and geological consultancy company that was established by Roger Key, Andy Moore, Simon Bate and Rick Bonner in November 2014.
In November 2016 the company acquired two mineral exploration licences (PL310/2016 and PL311/2016) from the Botswana Government. The licences cover the eastern and central parts of a shear/feeder zone through the centre of the Bushveld-related Molopo Farms Complex in southern Botswana. A third licence (PL202/2018) was acquired in early 2018 immediately to the south of PL311/2016.
In the year to 30 June 2018, Kalahari Key’s loss before tax amounted to 1,302,868 Pula (approximately £93,000). The net assets of Kalahari Key as at 30 June 2018 were 1,080,455 Pula (approximately £77,000).
The target mineralization is Ni-PGM in the shear/ feeder zone. Re-processing and re-interpretation of existing high-resolution airborne magnetic data and regional gravity data was initially used to identify target areas. Selected core from previous exploration programmes has also been examined to better understand the geology of the Complex.
Towards the end of 2018, NRGTM was contracted to complete a high-resolution airborne magnetic and Electro Magnetic survey over the feeder/shear zone using their Xcite TM methodology. The preliminary analysis of the new geophysical data has to date identified 17 conductor targets within the feeder/shear zone.