Discovery Metals Limited’s share price jumped by more than 23% following the company’s signing of a new joint venture with Japan Oil, Gas and Metals National Corporation (Jogmec).
The agreement allows Botswana’s BCL Limited to earn a 51% stake in the Dikoloti nickel project in Botswana. Jogmec currently holds a 72% interest in the project.
Discovery Metals Limited have spoken about the agreement, highlighting that BCL would only gain a participating interest in Dikoloti if the company was able to convert the current prospecting license into a mining license, under Botswana law.
If this is successful, Jogmec’s ownership would decline as a result, to 35.5% while DML would retain a 13.7% interest in Dikoloti.
BCL would act as the operator of the project.