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Kavango Resources (KAV)

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Tuesday 05 March, 2019

Kavango Resources

Additional Equity Placement

RNS Number : 8125R
Kavango Resources PLC
05 March 2019
 

PRESS RELEASE

 

 

5 March 2019

 

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

 

ADDITIONAL EQUITY PLACEMENT

 

Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard List segment of the main market of the London Stock Exchange and targeting the discovery of world class mineral deposits in Botswana, is pleased to announce that it has raised a further £250,000 (before expenses) through a placing of 8,928,571 ordinary shares of 0.1p each ("Ordinary Shares") at a price of 2.8p each ("Placing Price") (the "Placing").

HIGHLIGHTS:

·   Following the equity placement announced on 25 February 2019, whereby the Company raised gross proceeds of £500,000, the Company was approached by Turner Pope Investments (TPI) Ltd ("Turner Pope") who have raised a further £250,000 through the placing of 8,928,571 Ordinary Shares at 2.8p/share (the "Placing Shares");

·     Each Placing Share has a warrant attached which is exercisable at a price of 12p from the earlier of: the date falling one year after the date of Admission (defined below) or the date of publication of a prospectus until 31 July 2020 and which, if exercised, gives the warrant holder the right to an additional half warrant exercisable at 24p prior to 31 July 2022.  These are the same terms attached to the warrants of the Placing Shares announced on 25 February 2019;

·    Turner Pope will receive 535,714 warrants, exercisable at the Placing Price from the earlier of: the date falling one year after the date of Admission (defined below) or the date of publication of a prospectus until 12 March 2021;

·    The funds will also be used to accelerate exploration at the Company's Kalahari Suture Zone (KSZ) Project in southwest Botswana.

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

"We are extremely pleased to welcome our new investors introduced by Turner Pope, who have successfully assisted the Company in raising an additional £250,000 (before expenses), to add to the £500,000 raised last week. The proceeds will allow Kavango to accelerate further its exploration program at the KSZ project area. The KSZ project covers over 9,000 km2 of prospecting licences prospective for base metals in southwest Botswana.

The funds will also assist us to review other highly selective but potentially very interesting natural resource opportunities in Botswana.

Our current exploration programme in Botswana is on track, with both the airborne electromagnetic (AEM) survey (see RNS dated 21 January 2019) and the drilling at Ditau, which forms part of the KSZ project (see RNS dated 28 January 2019) progressing well. Further information is expected to be available shortly on both these programmes and this will be relayed to the market at that time".

Further information in respect of the Company and its business interests is provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.

Application for admission

The Placing Shares will rank pari passu in all respects with the existing Ordinary Shares. Application will be made for the 8,928,571 Placing Shares to be admitted to trading on the Standard List segment of the main market of the London Stock Exchange ("Admission"). It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00am on 12 March 2019.

Total Voting Rights

Following the issue of the Placing Shares, the total issued share capital of the Company will consist of 160,955,709 Ordinary Shares. Therefore, the total number of voting rights in the Company is 160,955,709 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company. 

Notes for Editors:

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 15 prospecting licences covering 9,231 km2 of ground, including most of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Cu-Ni-PGE rich sulphide orebodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting the World Class Norilsk Ni-Cu-PGE orebodies in Siberia.

      Exploration Model:

Kavango's exploration model is based upon the search for magmatic massive sulphide orebodies buried beneath up to 200m of overburden. The identification of drill targets follows a carefully constructed exploration program specifically developed by the Company for exploration in areas covered by Kalahari and Karoo sediments and sands.

The exploration program is initiated by identifying the location of magmatic intrusive rocks from an analysis of the regional magnetic surveys published by the Ministry of Mines. This is followed by an airborne electro-magnetic survey (AEM) carried out over the magnetic anomalies that have signatures indicating the presence of intrusive rocks at depth. By using the latest generation of low frequency helicopter-borne EM, conductors lying below the Kalahari/Karoo cover can be identified for further investigation. These conductors can be tested on surface by very high sensitivity soil sampling*, which can detect metal ions transported from buried metal rich massive sulphide deposits associated with the emplacement of magmatic intrusive rocks.

Kavango uses a ground based geophysical technique known as Controlled Source Audio frequency Magneto Tellurics (CSAMT)** to identify the exact location of the conductors. The shape, orientation and depth of the conductors will determine if the conductor should be drilled. The presence of a metal in soil anomaly is also used to prioritise the conductors.

The next phase of the exploration involves the drilling of the conductor to determine the presence of sulphide mineralisation and its metal component (discovery). This is followed by the evaluation of the discovery, which will determine whether the deposit is large enough and rich enough to make an economically viable mine (feasibility).

*Kavango geologists have pioneered a high resolution soil sampling technique to detect ultra-fine metal particles which have been transported in solution from considerable depths of burial to the surface by capillary action and transpiration. Evaporation leaves the metal ions as accumulations within a surface "duricrust" which is then sampled and analysed. Zinc, which is the most mobile of the base metal elements (i.e. goes into solution easily) acts as a pathfinder to mineralization at depth.

**Massive sulphide (base metal) deposits can be detected by CSAMT because they conduct electricity easily (conductors) as opposed to silicate wall rocks (resistive).

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information please contact:

 

Kavango Resources plc

 

 

Michael Foster

+44 20 3651 5705

[email protected] 

 

 

 

City & Westminster Corporate Finance LLP

+44 20 7917 6824

Nicola Baldwin

 

 

SI Capital Limited                                                                                                 +44 1483 41 3500

Nick Emerson

 

                  

                                           

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This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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