African Battery Metals PLC – Acquisition and Earn-in Agreement

African Battery Metals plc (LON:ABM) the AIM listed battery metal exploration and development company is pleased to announce it has entered into a Share Acquisition and Earn-in Agreement in respect of a nickel – PGM (platinum group metals) opportunity in Botswana.

Highlights:

• ABM has acquired an 18.26% stake in Kalahari Key Mineral Exploration (Pty) Limited, (“Kalahari Key”) a Botswana registered exploration company with a 100% interest in the Molopo Farms Complex Project (the “MFC Project” or the “Project”) in south west Botswana for a total consideration of US$194,810; 
• In addition, ABM may at its sole discretion and by 31 December 2019, elect to earn-in to a 40% direct project interest in the MFC Project, by expending US$500,000 by 31 December 2020 on ground exploration at the Project, expected to include drilling of high priority targets (the “Earn-in”); 
• Upon completion of the Earn-in expenditure requirement, ABM will hold a total economic interest of 50.96% in the MFC Project through its 18.26% shareholding in Kalahari Key and 40% direct interest in the MFC Project and will have representation on the MFC Project operating committee and the Kalahari Key board; 
• The MFC Project comprises three exploration licences, covering 2,725 square kilometres which are believed to be prospective for nickel, PGM and copper mineralisation; 
• Alongside the acquisition of all historic exploration data, Kalahari Key has recently undertaken a high-resolution, helicopter-borne electromagnetic and magnetic survey using New Resolution Geophysics’ (“NRG”) Xcite System™ (the “Survey”); 
• The airborne geophysics undertaken in the Survey has identified 17 key zones where the conductivity of the rocks is of interest and Kalahari Key is reviewing this data and constructing a priority list of targets for ground exploration follow up; 
• Further information in respect of Kalahari Key and the MFC Project background is outlined below and at the Kalahari Key website: www.kalaharikey.co.uk; 
• ABM will provide further updates in respect of Kalahari Key and the MRC Project as material operational developments occur. 

Andrew Bell, Chairman of African Battery Metals, comments: 

“I am delighted to secure this new Botswana opportunity for African Battery Metal shareholders.  Botswana is an exceptional country with exciting exploration opportunities and a superb operating environment.

This significant opportunity comes to us after the MFC Project has already benefitted from extensive historical exploration that has already identified 17 targets through Airborne Electomagnetic Surveys.

There is some further Airborne Electromagnetic work to do, with ground exploration follow up and ongoing target prioritisation.  However, the ultimate key to unlocking the value from exploration targets under sand cover is via the drill rig and we will be working with Kalahari Key to identify the quickest route to active drilling operations.

The Board considers this investment consistent with its stated policy of seeking battery metal exposure in Africa and believes that further exploration success at the MFC Project would by virtue of the potential scale have a transformative impact on the prospects of ABM and on investor sentiment towards it.  

I am delighted to be working with the Kalahari Key team and would like to emphasise the diligent work they have done to bring the MFC Project to its current position. 

These are exciting times and we anticipate further updates in respect of Botswana and our other business interests in the near future.”

Dr Roger Key, CEO of Kalahari Key, comments

“Kalahari Key is very pleased to have reached this agreement with African Battery Metals and we look forward to a productive partnership.

The work done on the MFC Project so far has reinforced our belief that we have a significant resource with a geological model analogous to Voisey Bay. We welcome the financial input from ABM that will enable us to move quickly into a drilling phase, and we also appreciate the management and organisational benefits that come from a close working relationship with ABM.”