Power Metal Resources plc (LON: POW) the AIM listed metals exploration and development company is pleased to provide a business update in respect of the Company's Strategic Joint Venture ('SJV') with Kavango Resources plc ('Kavango') (LON: KAV).
Background
The SJV covers precious, base and stategic metal opportunities in Botswana. Power Metal and Kavango each have a 50% interest in the SJV.
The plan is for the SJV to secure a listing in London, and to this effect a local Botswana operating company has been established called Kanye Resources (Pty) Limited ('Kanye Botswana'). Kanye Botswana is wholly owned by Kanye Resources plc ('Kanye plc'), a UK public company which will be the planned listing vehicle.
Power Metal and Kavango will each have a 50% shareholding in Kanye plc following completion of the restructuring exercise. Both companies will have representative directors on the board of Kanye plc and will contribute to the funding of Kanye plc and Kanye Botswana, during the listing process.
Formal transfer documents have been lodged with the relevant authorities in Botswana to transfer the four SJV licenses currently held in the name of Kavango Minerals (Pty) Ltd into Kanye Botswana. The four licences are as follows: South Ghanzi Project (Kalahari Copper Belt or 'KCB') covering 1,294 km2 in two prospecting licences and targeting copper/silver discoveries; Ditau Project covering 1,386 km2 in two prospecting licences and targeting rare earth element discoveries.
With its strategic footprint of exploration interests in Botswana, Kanye plc will seek to acquire additional exploration opportunities in the build up to listing, further enhancing its position.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented: 'The conditional acquisitions announced today, subject to due diligence and approvals in Botswana, would significantly increase the footprint of Kanye Botswana in the Kalahari Copper Belt. The additional ground complements that already held and we believe will add material value to the investment proposition, in advance of the planned listing in London.
The collaboration with Kavango has so far seen material exploration success and now has delivered an opportunity, through the conditional acquisitions announced today, for the SJV to become an even more significant participant in the rapidly advancing Kalahari Copper Belt exploration story.'
Contact:
Paul Johnson
Tel: +44 (0) 7766 465 617
Notes to Editors
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
POWER METAL RESOURCES PLC 
