Power Metal Resources PLC backs fundraise by partner Kalahari Key

PLC () said it will maintain its stake in Kalahari Key Mineral Exploration by taking up its rights in full in a share issue by the privately-owned explorer.

Kalahari Key currently holds 100% of the Molopo Farms Complex nickel sulphide and platinum-group metal project in Botswana.

Power Metal has an 18.26% stake in Kalahari Key plus the right to earn a 40% direct stake in Molopo by funding US$500,000 of exploration this year.

In a statement, it said its percentage holding in Kalahari Key following the rights issue will be a minimum of 18.26% but might be higher depending on the take-up by other shareholders.

The rights Issue was priced with US$55 per share and Power Metal has subscribed for 1,771 Kalahari Key shares for a cash cost of US$97,405. 

Paul Johnson Power Metal Resource’ chief executive, said: “With the drill programme underway in Botswana, and the geology identified from that programme to date in line with expectations, at Power Metal we are increasingly excited by the MFC Project and its potential for a company transformational discovery.

“Therefore, it was clear that Power Metal should participate in the modest financing undertaken through the Rights Issue by Kalahari Key and the amount expended of US$97,405 (circa £75,250) is comfortably afforded from existing Power Metal working capital of approximately £1,700,000 (comprising cash and listed investments only).”