TSX-V-listed diamond and metals explorer Tsodilo Resources has reached an agreement to grant private Botswana-based alternative investment firm TBM royalties on its wholly-owned Botswana subsidiary Gcwihaba Resources’ metal projects for $500 000.
Gcwihaba’s metal licences include those for base and precious minerals, platinum group metals and rare-earth elements.
Tsodilo explores for economically viable diamond, metal deposits and industrial stone at its Bosoto, Gcwihaba Resources and Newdico projects, in Botswana, as well as its Idada 361 project, in Barberton, South Africa.
The proceeds from the royalty sale will be used for exploration and general corporate purposes.
The package of assets in the royalty sale includes the grant of a 0.5% net smelter return or net mineral return on Gcwihaba's seven prospecting metal licences in north-west Botswana.
Tsodilo chairperson and CEO James Bruchs says the agreement represents significant potential revenue for the buyer and an attractive source of funding for Tsodilo, enabling the company to fund its exploration activities while still giving Tsodilo shareholders full upside exposure to its projects.
The company also has a 100% stake in Bosoto, which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana, and the PL216/2017 diamond prospection licence also in the OKF.
The company has a 100% stake in its Gcwihaba project area consisting of seven metal prospecting licences all located in the north-west district of Botswana.