THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014, AS AMENDED WHICH, BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, FORMS PART OF
(“Evrima” or “the Company”)
Kavango Resources plc (LSE: KAV) enters option agreement to acquire up to 51.15% of Kalahari Key Minerals Exploration Pty Limited; Evrima elects to maintain Project Level Interest
Particulars of the RIS :
- Kalahari Key Minerals Exploration Pty Limited (“KKME”): Background
- Kavango Resources plc: High Level Overview
- Evrima plc elects to maintain Project Level Interest
- Chairman’s Comment
- KKME: Background
KKME is a private mineral exploration company registered in
The KKME opportunity developed from a recognition that no historical exploration targeting “feeder” styles of Ni-Cu-PGM mineralisation had been completed within the MFC ultramafic complex. The founding group of four seasoned metals explorers identified a number of prospecting licences over a prospective geological feature often associated with feeder-style deposits. The exploration work conducted to date by KKME continues to support the prospectivity of the licence areas and a series of exciting targets has been identified for a proposed drilling campaign.
KKME is a privately owned company, which currently owns 100% of prospecting licences PL310/2016, PL311/2016 and PL202/2018 in
Power Metal Resources plc (LSE: POW - "Power Metal") has an effective 40% project interest in the MFP, which it will convert into equity in KKME on a pro-rated basis, should the Proposed Acquisition proceed.
2. Kavango Resources plc News Release: Summary of Content
Kavango Resources plc (“Kavango” or “LSE: KAV”), the exploration company targeting the discovery of world-class mineral deposits in
Following the Proposed Acquisition, Kavango would hold an interest of between 50.74% and 51.15% in KKME, Evrima would hold between 8.86% and 9.26% of KKME and Power Metal would own the remaining 40%. Power Metal and Evrima each intend to retain their shares in KKME and will continue as project partners. Kavango would become the operator.
Rather than pay a cash option premium, Kavango shall complete a work programme on the MFP (the "Work Programme"). This will enable Kavango to complete technical due diligence, including fieldwork, prior to deciding whether to exercise its Option. As part of the Work Programme, Kavango will perform a review of all geological and geophysical data gathered from previous exploration of the MFP.
The full RNS announcement by Kavango can be viewed here .
3. Evrima elects to maintain project level interest in the Molopo Farms Complex (“MFC”)
Conditional on Kavango exercising its right under the Option, Evrima will own a project-level interest of between 8.86% and 9.26% of the Molopo Farms Complex (“MFC”) and have the right to nominate a member of its choice to the Board of KKME.
4. Executive Chairman, Simon Grant-Rennick, commented,
“We are glad to announce that there is commercial interest and appetite for KKME. Last year, through an all-equity transaction, the Company completed the acquisition of 17.2% of KKME, resulting in Evrima becoming the second-largest shareholder of KKME. This was a strategic acquisition with two of the four founders of KKME and capitalised in equity.
Through our existing investment interests, Evrima’s present investment mandate is exclusive to investing in mineral interests and companies operating in
This is a positive step forward for the project and secures a well-capitalised partner in progressing the project further.”
The Directors of the Company, who have issued this RIS announcement after due and careful enquiry, accept responsibility for its content.
REGULATORY ANNOUNCEMENT ENDS
Peterhouse Capital Limited (Corporate Stockbroker):
Lucy Williams: +44 (0) 20 7469 0930
Duncan Vasey: +44 (0) 20 7220 9797 (Direct)