THIS ANNOUNCEMENT IS NOT DEEMED BY SPORT CAPITAL GROUP PLC TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014, AS AMENDED ("MAR"), OWING TO THE PRIOR PUBLICATION BY OTHER PARTIES OF THE SUBSTANTIVE CONTENT.
Sport Capital Group PLC
(“Sport Capital Group” or the “Company”)
Update re. Investment
On 24th July 2019 the Company announced its unaudited interim results for the period ended 30th June 2019. The prefatory statement by the Chairman mentioned that, during the period under review, the Company had made a follow-on investment in Kalahari Key Metals Exploration (Pty) Limited (“KKME”) https://www.kalaharikey.co.uk/, a battery minerals exploration company which explores in Botswana for nickel (“Ni.”) and platinum group elements (“PGE”). KKME holds two prospecting licences within the Molopo Farms Complex, a large intrusion with proven potential for Ni. and PGE, straddling the border of Botswana and the Republic of South Africa.
In keeping with the Directors’ previous policy of updating the market on developments affecting its investments and in view of a regulatory news service announcement issued on 28th August 2019 by Power Metal Resources plc (“POW”) https://www.powermetalresources.com/, the prospective joint-venture partner and a significant shareholder of KKME, the Company draws attention to POW’s announcement https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/POW/14204712.html and to the following extract from a communiqué recently issued to its shareholders by KKME:
“[KKME] is pleased to announce the completion of a ground geophysics survey of its target areas in Botswana previously identified by airborne electro-magnetic (EM) surveys. The ground geophysics was carried out using high-power electro-magnetic ("HPEM") transmitters capable of transmitting up to 200A together with the ultra-sensitive Supracon Jesse-Deep SQUID ("superconducting quantum interference device") sensor hooked-up to the industry standard EMIT Smartem24 receiver. Transmitter loops of approximately 1km by 1km were laid out using 35mm2 aluminium wire and lines (100m or 200m spacing) were surveyed at either 50m or 100m reading intervals, depending on depth to target. In total 11 loops were undertaken around 14 individual targets from the original helicopter EM Survey. The work and the subsequent data analysis and interpretation were done by Spectral Geophysics, based in Gaborone and Stellenbosch, under the direction of its MD, Mr. Cas Lotter.
Three of KKME’s directors worked with Mr. Lotter in Stellenbosch in the week beginning 19th [August] 2019 to draw conclusions from the results of the survey, the data from which has now been modelled (some outstanding issues in the modelling are on-going, but these are not thought to be material to overall understanding). It should be noted that the full technical report and processed data will be delivered to KKME in due course.
The Board of KKME is highly satisfied with the work done by Spectral Geophysics and is very pleased with the outcomes. Without going into too much geophysical detail, the preliminary data show the 2D and 3D modelled ore bodies and the interpreted EM discontinuities representing modelled conductors. From these data, various vertical and inclined boreholes are suggested, for each of the most promising targets. We are therefore in a position to commence defining a drilling programme, based on the data, which can be phased as resources allow.
It is important to note that the drilling programme must be dynamic, in other words subject to change as the results come in. For example, if the first borehole in Target 1 makes a strong intersection with the main part of the ore body, this would obviate the need to drill a second borehole in Target 1, and resources can be re-deployed to Target 2. If, on the other hand, the first borehole does not hit the economic centre of the ore body, the plan will be to use the data from the EM sensor dropped down the borehole to more accurately position a second borehole into Target 1. Ground gravity and geochemistry will also be used before drilling to reduce the risk of mis-location.
The cost of the drilling work, associated ground gravity, environmental survey and laboratory analysis will be significant due to the success of the EM surveys carried out, and the number of targets generated as a result. To fully assess these, it is likely that the cost of this work will exceed our current resources, including the proposed joint venture with Power Metal Resources plc (“POW”). The Board will therefore discuss the options with POW and others, including with drilling contractors who might accept equity in KKME and/or a project interest in exchange for part-payment of drilling costs. Of course, before proceeding with any such option, the Board will discuss the possibilities with all our shareholders. In the event that further resources cannot be identified, we will proceed with a more limited programme of drilling, although this is not the desired outcome at this stage. [ ].
David Ovadia, Chairman, August 2019.”
Future developments of significance in relation to the Company’s investments will be brought to the market’s attention if, as and when the Directors become aware of them.
Simon Grant-Rennick,
Director,
Sports Capital Group plc,
2nd September 2019
This announcement has been made after due and careful enquiry; the Directors of Sport Capital Group plc accept responsibility for the content.
END OF REGULATORY ANNOUNCEMENT
Enquiries:
Sport Capital Group plc:
Simon Grant-Rennick: +44 (0) 797 325 3124; sgrelk7@gmail.com
Keith, Bayley, Rogers & Co. Limited:
Graham Atthill-Beck: +44 (0) 20 7464 4091; +44 (0) 750 643 4107; +971 (0) 50 856 9408; Graham.Atthill-Beck@kbrl.co.uk
Brinsley Holman: +44 (0) 20 7464 4098; Brinsley.Holman@kbrl.co.uk
