China Africa Resources plc agreed to acquire a 48.88% interest in Global Exploration Technologies Pty. Ltd., a private Australian company holding five exploration licenses in the Kalahari copper belt in Botswana.
The company on Feb. 1 said it will have to continue looking for a reverse takeover to avoid suspension from trading on the London Stock Exchange's AIM.
CEO Paul Johnson said Global Exploration will undertake exploration on the Kalahari properties in a bid to identify additional copper deposits in the region.
Under the investment agreement, China Africa will pay A$75,000 in cash to Global Exploration, which will be applied to clear outstanding shareholder loans, and will issue A$150,000 worth of common shares at 3 pence per share.
The company will also sole fund the licensing and exploration costs for the five licenses during the first 12 months of the agreement.
In mid-December 2016, China Africa sold its sole interest, the Berg Aukas zinc-lead-vanadium project in northern Namibia, and became a cash shell under the AIM Rule 15.
The company said at the time that it would look for a reverse takeover transaction mainly focused on the energy metals and minerals sector.
China Africa also announced a special dividend valued at 1.75 pence per share.