ABM also has the option to earn a 40% direct project interest by spending $500,000 on exploration, including drilling, by the end of 2020.

If it does exercise the earn-in option, it will be entitled to have representation on the MFC project operating committee and on the Kalahari Key board.

The project comprises three exploration licences, which cover 2,725sq.km and are believed to be prospective for nickel, PGM and copper mineralisation.

ABM chairman Andrew Bell said Botswana was 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 electromagnetic 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," he said.

Kalahari Key CEO Dr Roger Key said the company welcomed the financial input from ABM that would enable a quick move into drilling.

ABM's shares (AIM:ABM) rose 6.88% on the news Monday to 0.43p (US0.56c), down from 0.64p at the start of the year.