Two Shields Investments plc (LON:TSI), the AIM quoted investment company with a strategy to build a high quality portfolio of investments in fast growing and scalable digital and technology enabled businesses, today provided an update on ground operations being undertaken by Kalahari Key Mineral Exploration Pty Ltd at the Molopo Farms Complex project a Botswana Nickel-Copper-PGMs exploration project 100% owned by Kalahari Key.
Two Shields has a 17.8% interest in Kalahari Key. In addition, TSI owns 15,195,826 shares in Power Metal Resources plc (“POW”) representing approximately 4.1 per cent. of the issued share capital of POW. POW has an 18.26% shareholding in Kalahari Key and also has a right by 31 December 2019 to elect to earn into a 40% direct project interest in the Molopo Farms Complex project, through an investment of US$500,000 in the Project by 31 December 2020.
Should it elect to earn in, POW will hold an effective economic interest of 50.96% in the Project. POW’s Kalahari Key acquisition agreement was announced on 13 May 2019 and readers can review this announcement through the following link:
A summary of the update from Kalahari Key is set out below:
· Spectral Geophysics, Gaborone, Botswana have now completed the ground geophysics programme over targets for Ni-PGM mineralization identified by a recently completed helicopter-supported, High-resolution electro magnetic survey (the “EM Survey”);
· In total 11 loops were conducted on 10 of the best target areas from the 17 target areas identified from the EM survey;
· The data from the programme is now being interpreted and the KKME team will be hosting a technical review meeting shortly to review the findings;
· KKME expect to have defined top priority drill targets by the end of August 2019;
· In parallel and in preparation for the planned drill programme KKME are preparing the relevant environmental submissions required in Botswana prior to commencement of drilling;
· Also, KKME are in discussions with drilling companies to ensure, subject to environmental approvals, that the drilling contractors are in place and able to undertake the required drill programme;
· POW will provide a further update outlining the top priority drill targets and next steps, when this information becomes available to the Company.
GROUND GEOPHYSICS FURTHER INFORMATION
The system employed was the High-Power Electro-Magnetic (“HPEM”) transmitter capable of transmitting up to 200A together with the ultra-sensitive Supracon Jesse-Deep SQUID (“superconducting quantum interference device “) sensor hooked up to the industry standard EMIT Smartem24 receiver.
Transmitter loops of approximately 1km by 1km were laid out using 35mm2 aluminium wire and lines (100 or 200m spacing) were surveyed at either 50m or 100m reading interval, depending on depth to target.
In total 11 loops were undertaken around 10 individual targets from the original helicopter EM Survey.
BACKGROUND TO KALAHARI KEY AND THE MFC PROJECT
Kalahari Key, registered in Botswana, is a mineral exploration and geological consultancy company that was established by Roger Key, Andy Moore, Simon Bate and Rick Bonner in November 2014.
In November 2016 the company acquired two mineral exploration licences (PL310/2016 and PL311/2016) from the Botswana Government. The licences cover the eastern and central parts of a shear/feeder zone through the centre of the Bushveld-related Molopo Farms Complex in southern Botswana. A third licence (PL202/2018) was acquired in early 2018 immediately to the south of PL311/2016.
The target mineralization is Ni-PGM in the shear/ feeder zone. Re-processing and re-interpretation of existing high-resolution airborne magnetic data and regional gravity data was initially used to identify target areas. Selected core from previous exploration programmes has also been examined to better understand the geology of the Complex.
Towards the end of 2018, NRGTM was contracted to complete a high-resolution airborne magnetic and Electro Magnetic survey over the feeder/shear zone using their Xcite TM methodology. The preliminary analysis of the new geophysical data has to date identified 17 conductor targets within the feeder/shear zone.
PROJECT LEVEL 40% EARN-IN TO THE MFC PROJECT
Not later than 31 December 2019 POW may elect, at its sole discretion, to earn-in to 40% of the MFC Project by entering into and then fulfilling a commitment to spend US$500,000 (“Committed Spend”) during the period to 31 December 2020.
Upon POW entering into the Earn-in (or earlier with the agreement of all parties) an MFC Project operational committee (the “Committee”) will be established comprising members Roger Key (Kalahari Key Director), Andrew Bell (POW Director) and Andrew Moore (Kalahari Key Director). The Committee will determine the allocation of the Committed Spend and management of operational activities. Upon completion of the Earn-in expenditure requirement POW will hold 40% of the MFC Project
The Committed Spend will be applied primarily to the completion of drilling of four targets at the MFC Project.
Also, upon POW entering into the Earn-in (or earlier if agreed by all parties) Paul Johnson (POW Director) will join the Board of Kalahari Key.
Neither the Committee members nor the existing or new directors of Kalahari Key will be remunerated for their services.
Also, upon the Company entering into the Earn-in, a Joint Venture Agreement will be established between the parties which will determine strategy, operational management and corporate structuring. This will include the usual fund or dilute provisions unless an alternate structure is agreed by the parties.
Andrew Lawley, Chairman of Two Shields Investments:
“TSI welcomes this news from Kalahari Key and looks forward with great interest as to the results from the EM Survey. TSI has no ongoing funding commitments to this project and therefore positive developments within Kalahari Key should be viewed as non-core upside and will enhance our future options as we look for opportunities to return value to our shareholders from these assets. “