Kalahari Key is a private mineral exploration company registered in Botswana, engaged in the development of its Nickel-Copper-Platinum Group Metals (Ni-Cu-PGM) project called the Molopo Farms Complex (“MFC”). The Company is currently interested in 14.88% of the issued share capital of Kalahari Key.

In September 2020, the company already a minority shareholder of Kalahari Key (2.4% investment interest) engaged in commercial discussions with two of the four founders of Kalahari Key. The result of the discussions led to the company entering an option agreement with two of the four founders (“the grantors” or “the selling parties”) entitling Evrima plc a period to acquire a further 17.2% of Kalahari Key.

In November 2020, the company formally exercised their option to acquire a further 17.2% of Kalahari Key at a cost of £138,000 with the consideration satisfied through the issue of 2,300,000 new ordinary shares allotted at the price of £0.06 (six pence) per share (“Consideration Shares”). In addition to the Consideration Shares, the selling parties were awarded, 2,300,000 warrants over one further new ordinary share each in the capital of the Company at an exercise price of £0.12 (twelve pence) per share and a life to expiry of three years, 4th December 2023.

Evrima plc – Kalahari Key Share Purchases to Date
Shares PurchasedConsideration Paid (Cash/Equity)Cash (USD)Equity Consideration (AQSE: EVA)
July 2018288Cash Subscription$14,976
April 2019182Cash Subscription$10,010
November 20203,332Equity Swap$02,300,000
Total3,802
Total Cash Cost$24,986
Total Equity Cost£138,000
Equity Consideration2,300,000
Consideration as % of Share Capital5.83%

The Kalahari Key opportunity developed from a recognition that no historical exploration targeting “feeder” styles of Ni-Cu-PGE mineralisation had been completed within the Molopo Farms ultramafic complex. The founder’s group of four seasoned metals explorers identified a number of prospecting licences over a prospective geological feature often associated with feeder-style deposits.

In 2019, Kalahari Key entered a financing and earn-in agreement with AIM-quoted Power Metal Resources plc (AIM: POW). In 2019, Power Metal Resources owned 18.26% of KKME and elected to exercise an option granting it the right to earn a 40% direct project interest in the MFC by completing qualifying expenditures totalling US$500,000 by the end of 2020.

Power Metal satisfied the terms of its earn-in with Kalahari Key during 2020 with the maiden drill campaign being the central use of funds injected concurrent to the earn-in agreement.

In April 2021, Kalahari Key produced the following results from the campaign including;

Angled diamond drill hole KKME 1-6, downhole, significant Ni intersections include:

  • 8m @ 0.2% Ni from 292.7m
  • 1m @ 0.49% Ni from 309m, including 1.6m @ 0.72% Ni from 309.6m
  • 7m @ 0.16% Ni from 501.8m
  • 9m @ 0.13% Ni from 518.2m
  • 4m @ 0.28% Ni from 594.4m

As drill core was selectively sent for sample analysis the reported mineralised intervals are considered to be open.

  • Assay results confirm Ni grades for pentlandite-bearing university mineralogical samples:
    • IMK-05139 (0.44m pyroxenite sample from 310m down-hole depth) assayed at 6,999ppm Ni (0.70% Ni) from a primary magmatic, pentlandite-bearing, assemblage.
    • IMK-05149 (0.58m pyroxenite sample from 295m down-hole depth) assayed at 6,606ppm Ni (0.66% Ni)
    • IMK-05153 (0.54m pyroxenite sample from 297m down-hole depth) assayed at 2,244ppm Ni (0.22% Ni)
    • Both IMK-05149 and IMK-05153 contained primary pentlandite within predominant secondary nickel sulphides, arsenides and alloys.

On 18 May 2022 Power Metal announced a conditional acquisition of certain of the Kalahari Key shareholders which if approved would result in 87.71% ownership of Kalahari Key.

The acquisition is conditional on a number of items, including but not limited to Power Metal receiving all in-country compliance and regulatory approvals to affect the change of ownership at Kalahari Key, post-acquisition.

Key terms of the acquisition include:

  • Power Metal has signed a conditional agreement to acquire an additional 58.7% interest in the share capital of Kalahari Key.
  • Power Metal to acquire a further 15,002 Kalahari Key shares for £807,348 payable through the issue of 46,134,171 new ordinary shares of 0.1 pence each in the Company (“Ordinary Shares”) shares at a price of 1.75p per new Ordinary Share.
  • Following completion and a restructuring of the MFC Project interest Power Metal will hold 87.71% of Kalahari Key which will wholly own the Molopo Farms Complex Project on completion (an increase of approx. 35% from the current circa 53% MFC Project effective economic interest held by Power Metal).
  • Power Metal will become operator of Kalahari Key with immediate effect and will look to accelerate exploration, including a next stage drill programme.

Evrima will provide more information regarding the funding mechanism conditional on the closing of the Power Metal acquisition. The Company anticipates entering discussions with Power Metal to consider future exploration and development campaigns.

Subject to completion of the acquisition, which has the support of Kalahari Key shareholders, the Company will hold the following interest in, Kalahari Key on a pre-determined, fund or dilute formula.

ShareholderShares held Pre-Conditional Power Metal TransactionAs a % of Kalahari KeyFollowing Acquisition as a % of Kalahari Key
Evrima plc3,802 Shares14.88%8.93%