TIDMKAV
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 GBP250,000 (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 GBP500,000, the
Company was approached by Turner Pope Investments (TPI) Ltd
("Turner Pope") who have raised a further GBP250,000 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 GBP250,000 (before expenses), to
add to the GBP500,000 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 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 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 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**************************************
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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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