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Blenheim Natural Res (TSI)

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Wednesday 01 November, 2017

Blenheim Natural Res

Completion of acquisition - 20% interest in KKME

RNS Number : 1814V
Blenheim Natural Resources PLC
01 November 2017
 

1 November 2017

BLENHEIM NATURAL RESOURCES PLC ("Blenheim" or "the Company")

 

Completion of the acquisition of a 20 per cent interest in Kalahari Key Mineral Exploration (Pty) Limited ("KKME").

 

Further to the Company's announcement on 14 September 2017, Blenheim is pleased to confirm that all conditions of the Investment Agreement made between the Company and Kalahari Key Mineral Exploration (Pty) Ltd  have been satisfied and the Company has completed its acquisition of a 20 per cent interest in KKME.

 

Blenheim's Chairman, Chris Ells, commented: "With due diligence completed to Blenheim's satisfaction all conditions have now been fulfilled for Blenheim's investment into KKME. KKME's work programme has been agreed and ground geophysical and geochemical surveys over the priority targets have commenced to identify an initial drill programme. The Molopo Farms Complex has the potential for discovery of significant deposits of nickel and platinum group elements, being a geological extension of the well-established South African platinum belt. Nickel is now considered to be a key ingredient in lithium-ion batteries; this complements Blenheim's thrust towards making strategic investments in a small number of companies in the future energy space, including lithium and cobalt."

 

Investment in Kalahari Key Mineral Exploration (Pty) Ltd

 

On 14 July 2017 Blenheim announced that it had conditionally agreed to subscribe for 2,500 ordinary shares in the capital of KKME, ("KKME Shares"),  representing 20 per cent of the issued share capital of KKME, at a price of US$52 per KKME Share, for a total cash subscription of $130,000 (the "Subscription").

 

The Investment Agreement also gives Blenheim the right, within two years, to subscribe for 2,500 additional new KKME Shares at the same subscription price of US$52 per KKME Share ("Additional KKME Subscription Shares"). If Blenheim takes up its right to subscribe for the Additional KKME Subscription Shares, and assuming that no further KKME Shares are issued prior to that date, then Blenheim's enlarged shareholding in KKME would represent 33.33 per cent of the then issued share capital of KKME.

 

 Molopo Farms Complex

 

The Molopo Farms Complex ("MFC") is a large, layered ultrabasic/basic intrusion covering more than 13,000 km2 in southern Botswana and adjacent parts of the Republic of South Africa. It has long been considered to have considerable mineral potential, particularly for platinum group elements, as well as for nickel and chrome, but until recently these were overshadowed by the established mining zones in neighbouring South Africa. However, using modern geophysical techniques, and noting that Botswana offers a stable and mining-friendly environment, the Molopo Farms area is seen as an area of attractive exploration interest.

 

KKME

 

KKME holds two prospecting licences (PL310/2016 and PL311/2016), granted on 17 November 2016, within the MFC which cover a large part of the targeted feeder/shear zone through the middle of the MFC area. 

 

Ends

 

 For further information please contact:

 

Chris Ells

Blenheim Natural Resources Plc

+44 (0)1622 844601

 




Neil Baldwin/Mark Brady

Spark Advisory Partners Limited

(Nominated Adviser)

 

+44(0)203 368 3554

 




Nick Emerson

SI Capital Ltd (Sole Broker)

+44 (0)1483 413500

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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