Oscillate, operating under the brand name Serval Resources, has entered into a sale and purchase agreement with KCL Investments to acquire, subject to certain conditions being satisfied, all of the issued shares in Kalahari Copper, which includes the licences held by Kalahari Copper’s subsidiaries in Namibia and Botswana.
Completion of the acquisition agreement is anticipated to establish the company with a significant exploration position in two emerging copper belts in Africa, the Kaoko basin and the Kalahari Copper Belt (KCB), that the directors believe have been underexplored historically in contrast to their prospectivity.
In a separate statement, SP Angel, which acts as broker to Serval, indicates that Serval has conditionally agreed to acquire Kalahari Copper’s Namibian and Botswanan copper portfolios for an initial payment of £500 000, 30% of Oscillate’s outstanding share capital alongside a £2-million payment on the successful Aim-listing, followed by a series of £1.5-million milestone payments.
This provides Serval with an expansive portfolio of early-stage sedimentary copper projects in Botswana and Namibia, it points out.
Through the agreement with Kalahari Copper, Serval has acquired several highly prospective licence packages in northern Namibia, SP Angel points out.
It describes Namibia as one of its favoured mining jurisdictions globally, with distinct geological similarities to the Central African Copper Belt.
“Serval is taking a methodical and data-driven approach to generating high-priority drill targets across the licences. We were struck by the extensive outcropping copper mineralisation and active artisanal mining operations in the region on our site visit.
Serval’s focus will be on a large-scale discovery of a sedimentary hosted copper/silver deposit,” it highlights.
In Botswana, Serval has built a portfolio of assets along strike from major Kalahari Copper Belt operations, including Khoemacau and Motheo, owned and operated by MMG and Sandfire respectively, SP Angel points out.
“They intend to capitalise on recent exploration success in the district, first identifying target horizons prospective for copper/silver mineralisation using modern-day geophysics and geochemical surveys, before drill testing. Serval’s primary aim in Botswana is finding deposits along strike or in a similar geological setting to the large-scale producing operations noted above,” it explains.
Majors, including BHP, South32 and Sinomine, are actively earning into the region, and SP Angel believes Serval’s new foothold will be of interest to larger-scale JV partners in due course.
SP Angel visited Serval’s licence packages in November.
“Whilst Serval remains a pre-resource exploration story, we see strong potential for a rerate from the current £2.4-million market cap through well-executed exploration and derisking programmes, including the possibility to delineate a maiden mineral resource estimate at the Namibian assets in the short- to medium-term,” it noted in its evaluation.
“We are delighted to have finalised this agreement to acquire Kalahari Copper as we see exceptional value in their portfolio of exploration assets in the Kaoko Belt in Namibia and the Kalahari Copper Belt in Botswana.
“The licence packages in each country are of substantial size and both regions host silver as an important by-product to copper mineralisation. We will soon be setting out our exploration programmes to systematically evaluate our priority targets following completion in order to further delineate the identified copper mineralisation, whilst aiming to maintain an efficient cost base,” says Serval CEO Robin Birchall.
“Copper already underpins society in a myriad of ways, but it also plays a fundamental role in the green energy transition, national security and the rapidly expanding digital economy. Our strategy is to identify significant deposits of sustainable copper and associated metals, such as silver, that can address the predicted shortfalls, given the expected upcoming constraints on global supply.
“As we prepare for our proposed admission to the Aim-market, our ambition is to become a pre-eminent investment vehicle for the UK market offering exposure to copper and associated future metals,” Birchall adds.
Meanwhile, Andrew Benitz will be joining the board as Kalahari Copper’s nominated nonexecutive director of the company once the acquisition completes.
“Andrew has significant expertise in leading and growing ambitious and focused resource businesses and has a wealth of listed company experience,” Birchall comments.
Birchall also welcomed Richard James to the senior management team, with immediate effect, as CFO.
“Richard has extensive experience in senior finance roles in the mining industry, including companies operating in Africa, and he will be a fantastic asset to the company as we prepare for the proposed Aim-listing and embark upon our plans to grow the business,” Birchall comments.