London-listed Power Metal Resources has elected to immediately pay its initial $150 000 cash contribution towards exploration into the strategic joint venture (SJV) with fellow listed Kavango Resources.
The SJV covers precious, base and strategic metal opportunities in Botswana.
The payment will accelerate progress across the SJV's prospecting licences in both the South Ghanzi project on the Kalahari Copper Belt and the Ditau project.
"This early payment by Power Metal reflects the rapid progress we are making at South Ghanzi and Ditau.
"Initial results from both projects have been encouraging and we will now bring forward plans for more extensive and intensive exploration. If results continue to impress, this will put us on a quicker path to exploratory drilling later this year,” comments Kavango CEO Michael Foster.
"Power Metal and Kavango are to accelerate the SJV both from an exploration and corporate perspective, including the plans for a potential listing on a North American or UK stock exchange as soon as practicable.
"To fund the proactive exploration programmes and the preparation for a listing of the SJV, Power Metal has accelerated remaining payments under the SJV agreement, meaning all financial commitments thereunder have now been satisfied in full, and earlier than initially planned,” adds Power Metal CEO Paul Johnson.
The SJV holds two prospecting licences in the Kalahari Copper Belt covering 1 294 km2 and targeting the discovery of large-scale copper/silver deposits (the South Ghanzi project); and two prospecting licences covering 1 386 km2 at Ditau, exploring ten "ring structures" targeting potential rare earth elements discoveries hosted in carbonatites.
Under the terms of the SJV, Power Metal committed to paying for the first $75 000 of exploration expenditure incurred in each of years 1 and 2 (totalling $150 000).
Owing to the progress that the SJV has made at both South Ghanzi and Ditau in late 2020, Power Metal has elected to pay its second $75 000 a year early. Power Metal has now paid $150 000 towards the SJV's exploration budget. These funds will be used to accelerate field exploration at both projects.
All future exploration expenditure will be incurred on a pro-rated basis between Kavango and Power Metal.