Kavango has taken an option to take a controlling stake in Kalahari Key Mineral Exploration, which owns the Molopo Farms Project (MFP) in Botswana. The option has no fee, but Kavango has undertaken to complete a works programme at the project.

Kavango will make a decision on exercising the option after completing the works programme.

If the option is exercised, Kavango will hold around 51% of the project, for a consideration of up to £1.9 million, with 40% held by Power Metal Resources.  

Kavango and Power Metals already work together on the Kanye Botswana joint venture.

"Our vision is to build a world-class minerals exploration firm in Botswana," Ben Turney, Kavango Resources CEO, said:

Our business model is based on making multiple, large-scale metal discoveries, which we can sell to major international mining firms.

Kavango also announced the acceleration of its acquisition of a 90% stake in the LVR joint venture, also in Botswana.

Kavango had a 25% stake in LVR as of June 2. Its right to grow its interest up to 90% was originally agreed to take place over seven years.

After positive results from recent exploration, Kavango announced that it would immediately acquire the 90% stake, for shares and warrants.

Kavango shares were down 3.5%, at 5.50p, 10.00 London time.