Power Metal Resources secures option to acquire two prospecting licences in Botswana

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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.

WATCH: Power Metal Resources’ Paul Johnson talks exploration, spin-outs and ‘crystallising value’

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.”

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