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Kavango Resources raises £2m through oversubscribed placing

10th November 2020

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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Botswana-focused explorer Kavango Resources has conditionally raised £2-million, before expenses, with the issuance of 72.72-million new ordinary shares in the capital of the company, at 2.75p apiece.

The net proceeds of £1.9-million raised will primarily be used to carry out proposed exploration work, provide working capital to the group and to meet its joint venture, regulatory and administrative commitments.

Kavango's primary proposed work programme will be focused on the Kalahari Suture Zone (KSZ) project, at which the company plans to complete large loop electromagnetic surveys to identify high-priority drill targets for a major drill campaign that is set to commence in 2021.

Kavango also plans to commit working capital to fund further exploration across its interests in the Kalahari Copper Belt (KCB) and at the Ditau project. Two of the KCB prospecting licences and the two Ditau prospecting licences are subject to a strategic joint venture with battery metals developer Power Metal Resources.

The other two KCB prospecting licences are subject to a farm-in agreement with Botswana-based LVR GeoExplorers.

The new ordinary shares have been conditionally placed by First Equity on behalf of Kavango, with institutional and other investors, including high net worth and retail investors. As such, First Equity is a joint broker with immediate effect and will be issued with 6.14-million warrants.

Each new ordinary share has, on a one-for-one basis, a warrant attached exercisable at 4.25p for a term of 30 months from the date of issue, which is subject to an acceleration clause whereby, should Kavango’s volume-weighted average share price exceed 15p for more than ten consecutive trading days, Kavango may at any time write to the warrant holders providing ten working days’ notice of accelerated exercise, with ten working days thereafter for payment.

Following the issue of the placing shares, the company will have 265.68-million ordinary shares in issue.

Kavango CEO Michael Foster says he is pleased to have received such strong backing from investors, as the company enters an exciting phase of Kavango’s development. “The company sought to raise a maximum of £2-million and I am happy to report that the placement was oversubscribed.”

He adds that Kavango is now well funded to pursue its ambitious exploration plans and unlock what it believes is the KSZ’s considerable potential.

“We have taken great strides over recent years to validate our overall exploration hypothesis that the KSZ is host to one or more large copper/nickel and platinum group metals deposits.”

Foster also notes that, in recent weeks, the company has continued further analysis of the extensive geological data it has compiled and will announce shortly the highest-priority target areas.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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