Further to the announcement on 21 March, Kavango Resources plc (LSE:KAV) announces that it has withdrawn its proposal to make an offer to acquire 100 per cent of the issued share capital of Kalahari Key Mineral Exploration Proprietary Ltd (“KKME”).
Despite the Company’s best efforts, it became apparent that there was insufficient agreement among the shareholders of KKME to justify incurring further time and expense with an uncertain outcome.
Kavango remains of the view that the Molopo Farms Complex Project (“Molopo”) held by KKME is a very attractive exploration opportunity. However, the Company is ready to drill key targets at the Ditau Camp Project (“Ditau”) and was not prepared to incur unnecessary operational delay.
Under Kavango’s original timetable, the Company had planned to mobilise the rig to Ditau on Friday 18 March. Site preparation has been underway at this project since the middle of February.
This work continued, while discussions with KKME were ongoing. Camp clearance, pad preparation and road access construction are nearing completion. A water drill contractor has been engaged to drill a water borehole, to provide a reliable source of water for drilling operations.
Now that Kavango has mobilised the diamond rig to Ditau, the Company will provide a more detailed announcement outlining its key targets and drill plans in the coming days.
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“I would like to thank the KKME team for their support and engagement in recent weeks. We wish them well with their future endeavours. Eleven of twelve shareholders agreed to the original offer Kavango made, but this was the kind of deal that would only work with unanimous approval.
There is clearly considerable potential at Molopo. Although we have not been able to secure a workable acquisition agreement at this moment in time, we will keep the door open.
More importantly for Kavango, we have maintained our momentum in the field. Ditau has been a longstanding project for the Company. We have accumulated a considerable amount of technical exploration data leading to this drill programme.
Advance preparations for rig mobilisation have progressed well. Construction work continued while discussions with KKME were ongoing. The campsite is ready to receive the rig and we’ve nearly completed construction of road access. The water borehole should be operational by the end of the month.
With the rig now on its way, we will provide a more detailed drill plan for the potential carbonatite targets at this project, which can be a source of Rare Earth Elements, in the coming days.”
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.