Subject to completion of due diligence on the licence areas, the funding party will obtain the option to earn into a maximum 80% of prospecting licences 339/2008 and 341/2008.
To do so it will have to assume the exploration activities and costs on those licences up to November 2014.
Continental will retain a free-carry interest of 20% up to the completion of a bankable feasibility study, subject to the right for the funder to acquire Continental’s residual interest at an agreed price or its fair market value as determined by an independent valuer at that time.
Commenting on the transaction, Continental CEO Don Turvey said the transaction would allow the company to keep an interest in the prospecting licences while focusing its attention on the De Wittekrans project.
“We remain optimistic about the potential of our Botswana projects and believe bringing in a funding partner is the best approach to enhance the value of these projects,” he said.
