Aim-listed African Battery Minerals (ABM) has entered into an earn-in agreement over a base metals and platinum group metals (PGMs) exploration opportunity in Botswana.
ABM has acquired an 18.2% interest in Kalahari Key Mineral Exploration, which owns the Molopo Farms Complex project, for $194 810.
ABM may elect, by December 31, to earn a further 40% direct interest in the Molopo project, on condition that it commit to spending $500 000 on exploration by December 2020.
Should ABM exercise that earn-in option, the company will hold a total economic interest of 50.96% in the Molopo project, through its 18.2% interest in Kalahari and 40% direct interest in the project.
ABM will then have representation on the Molopo project’s operating committee and the Kalahari board.
The Molopo project comprises three exploration licences covering 2 725 km2, which are prospective for nickel, PGMs and copper.
ABM chairperson Andrew Bell said in a statement on Monday that the Molopo project had already benefitted from extensive historical exploration, with 17 targets identified through Kalahari’s airborne electromagnetic surveys.
ABM will work with Kalahari to identify the quickest route to active drilling operations.
Kalahari CEO Dr Roger Key noted that the financial input from ABM would enable the company to move quickly into a drilling phase, while resulting in management and organisational benefits.