Within the KSZ Project, Kavango’s geologists have identified a 7km long magnetic body of The Ditau Camp Project
The Ditau Camp Project
The Ditau prospecting licenses cover 1,386km2 in the south west of Botswana. Geophysical and geochemical analyses by Kavango in the two prospecting licenses have identified 10 “ring structures” (including at least one possible kimberlite). One of the ring structures is a 7km x 5km magnetic and gravity anomaly, with significant zinc-in-soils anomalies. Assay and whole rock geochemistry results from two drill holes carried out at on this ring structure in early 2019 demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to “fenitization”, a type of extensive alteration associated with alkali magmatism and carbonatites.
In the 1970s, Falconbridge Exploration Inc. discovered three carbonatites about 30km north of Ditau, one of which is reported to have contained elevated grades of niobium. Carbonatites are the principal source of rare earth elements (REEs) including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications.
The Ditau Project is part of a joint venture with Power Metal Resources Plc.
Terms of the Strategic Joint Venture
Kavango and Power Metals will own the Strategic Joint Venture equally and will be joint operators.
Kavango will transfer into the Strategic Joint Venture:
- Its two prospecting licenses that make up the Ditau Project. These licenses cover 1,386km2 of prospective land for rare earths and copper. The Company has identified 10 carbonatite-like ‘ring structures’ here that represent sizeable exploration targets.
- Its two wholly owned prospecting licenses PL036/2020 and PL037/2020 on the KCB. These licenses cover 1,294km2 and are highly prospective for copper/silver mineralisation.
Power Metals will invest into the Strategic Joint Venture:
- The first $75,000 of exploration expenditure over two consecutive years, totalling $150,000.
- Up to £10,000 in set up costs, to cover the incorporation of the vehicle in line with local regulations and an appropriate holding company structure.
Additional exploration expenditure incurred by the Strategic Joint Venture, beyond the initial investment from Power Metals, will be on a pro-rated, “fund or dilute” basis.
To complete the transaction, Power Metals will:
- Pay £75,000 to Kavango
- Issue 6,000,000 shares in Power Metals to Kavango, at an issue price of 1.25p per share (the “Acquisition Warrants”)
- Issue 5,000,000 warrants in Power Metals to Kavango, exercisable over 2 years at an exercise price of 2p per share
Should the Power Metals Volume Weighted Average Share Price (“VWAP”) meet or exceed a price of 7.5p for five consecutive trading days, Kavango will then have 14 calendar days to exercise the Acquisition Warrants and make payment to Power Metal or the Acquisition Warrants will be cancelled.
Should Kavango exercise the Acquisition Warrants within 12 months of issue, they will receive 1 for 1 replacement warrants to subscribe for Power Metal shares, exercisable over an additional two years at an exercise price of 5p per share (the “Super Warrants”).