After the acquisition closes, Metal Tiger’s interest in KML will be reduced to around 43.9% from the existing 50%, which it had secured in an agreement signed last June.
Under the agreement terms, KML, which has invested $100,000 into exploration work at the licences held by Kitlanya, will acquire the latter for $700,000. After the deal is completed, the transaction will value KML at $5.2m.
Consisting of five recently granted exploration licences, the Kitlanya licences cover about 4,651km² of exploration tenure in the prospective Kalahari Copper Belt.
They have been divided into two project areas, Kitlanya West and Kitlanya East.
With the acquisition, KML’s direct land position in the Kalahari Copper Belt will increase to about 8,594km².
Metal Tiger CEO Michael McNeilly said: “We are delighted that KML has reached an agreement to acquire Kitlanya, which will consolidate its highly prospective exploration interests in the Kalahari Copper Belt.
“We intend to demonstrate our continued support for KML and its activities in Botswana through the provision of further funding in due course.”
The acquisition is conditional upon approval of the change of control of Kitlanya being granted by the authorities in Botswana and receipt of an updated letter for the licences.
As part of the agreement, Metal Tiger intends to provide further funding to KML to support its drilling in the second quarter of this year.
KML has interests in 12 highly prospective exploration licences covering a total area of 8,724km².