Metal Tiger (LON:MTR) has negotiated a low cost entry into a potentially high upside partnership focused on Botswana’s Kalahari Copper Belt.
It is teaming up with ASX-listed MOD Resources to form Metal Capital, with UK firm owning 30% of the joint-venture.
The plan is that, via a 100%-owned local company Tshukudu Botswana Metals, Metal Capital will acquire 14 prospecting licences owned by Discovery Mines, which is now in voluntary administration.
The copper and silver areas are adjacent MOD's Mahumo Project.
A total of seven priority targets identified provide opportunity for early, low cost exploration success, said Metal Tiger, which is stumping up an initial US$100,000.
The company said it and Patterson Securities will help find further funding in Australia and the UK to allow MOD to continue work in Botswana.
The deal was introduced by Metal Tiger’s chairman, the renowned geologist Terry Grammer.
He and MOD managing director Julian Hanna took Australia-listed Western Areas from a valuation of A$10mln to become an ASX 200 company valued at more than A$800mln.
Metal Tiger chief executive Cameron Parry said he was “delighted” with the joint-venture deal.