Hodges Resources (ASX: HDG) is to increase its landholding in...

Hodges Resources (ASX: HDG) is to increase its landholding in coal rich Botswana, with one prospecting license adjacent to the 4.2 billion tonne Takatokwane Project resource owned by Nimrodel Resources (ASX:NMR).
Under the deal, Hodges can initially earn a 51% in the two licences by incurring expenditure of $1 million over the next two years.
A joint venture agreement with Meerkat Energy (Botswana) (Pty) Ltd has been entered into for the acquisition of up to 80% of Meerkat’s two main coal prospects in Botswana.
The Lokgwabe prospect (PL168/2010) covers 501.6 km2. The second prospect (PL604/2009) is located near Rakops and covers a total area of 932km2.
It is strategically placed to provide an energy source to the rapidly developing copper industry in Botswana.
Botswana is shaping up as a potential major supplier of coal and could play an integral role in catering to southern Africa and India and China energy markets.
Hodges has identified resources prospective for open-cut mining and of a quality to satisfy export markets.
On completion of the agreed expenditure, Hodges then has an exclusive five year right to complete a feasibility study to acquire an additional 29% interest in the prospects.
Hodges will also be the designated manager of the project expenditures and operations.
An initial two stage drilling programme is planned for the Lokgwabe and Rakops prospects.
A combined RC and diamond programme of 4,000 metres at Lokgwabe would provide stratigraphic and coal quality information and an initial inferred JORC resource.