TIDMKAV
RNS Number : 9334Q
Kavango Resources PLC
25 February 2019
PRESS RELEASE
25 February 2019
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
GBP500,000 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
GBP500,000 (before expenses) through a placing of 17,857,142
ordinary shares of 0.1p each ("Ordinary Shares") at a price of 2.8p
each ("Placing Price") (the "Placing").
HIGHLIGHTS:
Placement
-- The Company has placed 17,857,142 Ordinary Shares at 2.8p/share (the "Placing Shares");
-- Proceeds (before expenses) amount to GBP500,000;
-- 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;
-- The placing was conducted by the Company's broker SI Capital Limited.
Michael Foster, Chief Executive Officer of Kavango Resources,
commented:
"We are pleased to announce the successful conclusion of a
placement with clients of SI Capital Limited. The proceeds of
GBP500,000 before expenses, will allow Kavango to accelerate its
exploration program at the Kalahari Suture Zone (KSZ) project area.
The KSZ project covers over 9,000 km(2) 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 according
to plan. Further information is expected to be available shortly on
both these programmes which the Company will of course relay 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 17,857,142
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 152,027,138 Ordinary
Shares. Therefore, the total number of voting rights in the Company
is 152,027,138 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 km(2)
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
mfoster@kavangoresources.com
City & Westminster Corporate Finance LLP +44 20 7917 6824
Nicola Baldwin
SI Capital Limited +44 1483 41 3500
Nick Emerson
****************************ENDS**************************************
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 rns@lseg.com or visit www.rns.com.
END
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