Power Metal Resources PLC (LON:POW) announced has secured an option to acquire two prospecting licences for gold and nickel and located upon the Tati Greenstone Belt, Botswana.
The option allows for a 60-business day due diligence period and, should the miner exercise it, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana.
The vendor is Vital Commodities, owned by Guernsey-based Equity Drilling Limited.
The Tati Greenstone Belt, located in the northeast of the country, contains many orogenic style gold deposits and several economically significant intrusive magmatic Nickel-Copper-Platinum Group Elements rich sulphide deposits, the AIM-listed firm said.
“We recently formed Power Metal Botswana to provide a holding company for new acquisitions in Botswana and I am pleased to announce this first transaction,” said chief executive Paul Johnson in a release.
“Subject to due diligence, this acquisition would give the company exposure to a new strategic project in the heart of the Tati Greenstone Belt, an under-explored area which we believe holds considerable potential for new gold and nickel discoveries.”
“This announcement further confirms the company’s commitment to expanding our operational interests in Botswana, which is a first-class destination for responsible exploration companies. Uniquely, the transaction incorporates an option fee that is convertible into a down payment against project drilling in Botswana.”