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JP - this drilling campaign has been a few years in the making already. They have done LOADS of prep work, including before DC came on board more recently. So it's about time they drilled the KCB. PB have now put £9 million into KAV, and I am sure they will want to see a return on their investment soon. So KAV have to get moving now and deliver for PB.
It's so much better to have a 3 month campaign with two Rigs on the ground, than have to wait 8 months. The latter also actually costs more, as there is more cash burn along the way, as BT explained. This also allows them to decide where future resources are best deployed - gold or copper or both.
The amount of skin in the game the CEO and FD have they'll be keener than anyone to maximise the value for shareholders. Ben said himself he wants to get this to 10p and then he can retire.
There is something about the Karakubis drill/results which KAV is not disclosing, why they are rushing the drill? I don't buy KAV saying "it saves overheads", its either got something to do with warrants expiring or a major fund raise or a deal they're working on. Normally they'd do a quick proof of concept campaign, mull over the results and then decide next drilling taking 6-12 months. I just hope KAV management extract maximum value for shareholders.
Yes, BT said they were looking to have assay results in Q3. And seeing as most of the funding is now coming from Purebond, I don't think there will be any such tactical considerations going forwards.
Do you think KAV will release full assay results for KCB before the next fund raise because this is a crucial question?
I don't think it's lack of interest, but more to do with the fact that the bookbuild was not at a discount and so private investors could/can buy on open market (and for a little less). This is a tremendous show of conviction and confidence on the part of Purebond and the BOD. They are clearly feeling very confident indeed, and why shouldn't they with the progress and results achieved in Zim to date, and the major drilling programme planned with Dave Cattrall at the KCB to start this month. This was the perfect time and indeed price for them to inject the extra cash into KAV 2.0.
As BT said, the next 6 months are going to be the most exciting and potentially transformational for the company. All imo and GLA
It's not a suprise no, but it's a better result for existing shareholders that as legalwolf says they are in sticky hands. It also shows confidence and conviction from those closest to the business.
Book build has completed.......private investors not convinced:
Of 257m new shares, Purebond take 221m, Directors 18m, private investors 18m (£22k).
Is anyone really surprised given the shenanigans? Predict an RNS on Friday for withheld assay results & RNS Monday outlining huge targets in KCB.
The money has been raised - pretty much all of it in sticky hands as well. Watch KAV 2.0 motor on from here:
"We are pleased to have secured a further £3.08million finance for Kavango. The accelerated bookbuild was an innovative funding approach that was only possible thanks to Purebond's strong support for Kavango and has helped us defend our recent share price gains in difficult market conditions.
We will use the funds to accelerate our various drill programmes and will continue to move forward at pace, as we explore for bulk-minable gold deposits in Zimbabwe and large-scale copper deposits in Botswana.
The second half of 2024 holds a great deal of promise for Kavango and our shareholders."
Legal, the main value drivers are KCB and getting into production and it should spike on any declared discovery. Until last week I thought Hillside/Nara resource would have a big impact particularly if they find 3m oz but the Ariana/Rockover deal for 1.3m oz was very low c$10/oz, nuts when gold is $2300/oz.
That's a blockbuster set of activities lined up by KAV 2.0. I think we will see 2p in no short time once this financing is complete. All imo and GLA
I think they'll be another raise in Nov/Dec.
§ Diamond drilling to test presence of multiple economic gold ore bodies in Hillside/Nara gold belt, Zimbabwe
§ 5,000m diamond drill campaign to prove the Kara Anticline is a copper-mineralising system in the Kalahari Copper Belt, Botswana
§ Completion of Hillside acquisition (announced >>> 23 April 2024)
§ Capital investment into Kavango Mining to increase gold production (announced >>> 08 March 2024)
§ Increasing project footprint in Zimbabwe, through securing additional options on projects
Now we are fully funded for the rest of the year with cornerstone investors and no warrants to endure. Excellent financing again by BT. Great chance of making a copper find with two Rigs on the ground and 5000m of drilling to be done. Certainly mean business here.
That was Ben's response to a question about size of minimum amount for the placing.
Hi James
Apologies this was something we had overlooked. FE’s minimum ticket size is £10,000
Jason has just agreed to reduce this to £2,500 for this deal. They have overheads and we are paying a small commission on this
If anyone enquires to make a lower order I’ve asked Jason to point them to me. Tbh for any amount at £2,500 or lower it would probably be more efficient just to buy in the market
Https://www.valuethemarkets.com/analysis/kavango-resources-kav-stock-rises
Interesting table this:
https://twitter.com/andrew_neal7/status/1783438675650412987
Last night's rns may have been missed.......
23/04/2024 5:12pm
RNS Regulatory News
RNS Number : 7432L
Kavango Resources PLC
23 April 2024
23 April 2024
Kavango Resources
("Kavango" or "the Company")
ZIM - Hillside Option Exercise
Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals exploration company, is pleased to announce that it has provided notice of exercise of the Hillside Call Option to the vendors of the Hillside Project ("Hillside") and Leopard South Project ("Leopard South"). Kavango intends to extend the Call Option on Leopard North to 30 June 2025.
Purchase agreements for Hillside and Leopard South are being drawn up by the Company's legal representatives and completion is scheduled for 15 May 2024.
Summary
· The Sellers and Kavango entered into call options in respect of the Hillside, Leopard North and Leopard South projects in a Call Option Agreement ("The Call Option") dated 25 July 2023, (announced >>> 25 July 2023). The Call Option had an initial term of six months, expiring 24 January 2024. This was subsequently extended, pending negotiation of revised terms following introduction of the Special Capital Gains Tax in Zimbabwe. Any material revisions to the terms will be announced in due course.
· Kavango has served notice of exercise to the Sellers, effective 23 April 2024.
· Completion is expected to occur on 15 May 2024.
It's a good start and they have lots of targets to go at.
Ultimately they will need to focus on the very best prospects and then start to do some definition drilling to work up an initial Maiden Resource Estimate.
Once they have that initial JORC resource with further exploration target upside will should firmly underpin the share price at far higher levels.
ORR managed to model up their initial resource of 375,000oz Au from a fairly modest drill program of
Just 6,685 metres of drilling across 54 holes. With a 1km strike length to a max depth of 264m.
Since they modelled that drill data from the 54 holes into an initial pit shell model and set out how they hope to repeat this again it has really helped to push the SP up over the past 6 months.
If BT can work towards identifying a number of potential pit shells and then just get one modelled up with the prospects of further multiple zones to develop the SP will take can of itself and many other funding options will open up to expand the company at scale.
The way this share has consolidated over a long period and slowly risen over the past couple of months and now the positive news flow gives a feeling we're in the early stages of a growth phase here. One to hold.
I agree. In KCB Dave Catterall has refocussed which is concerning when KAV had previous advanced licence areas but ultimately its discoveries which count & Dave is the recognised expert. Quietly optimistic.
I don't think they will return to KSZ or Ditau - unless they can find a JV partner (which I think is unlikely). The focus will be on Zim and KCB. Early success at KCB will obviously influence what happens next. I'm sure Purebond will continue to back their investment here, especially if the results are promising, as they have been so far in Zim.
What's the minimum spend?
Understood they have a limited time and if no discovery is made within a time frame then a third of the licence gets handed back.
Other than Karakubis, KAV have made it clear that KSZ/Ditau/KCB (odds & sods) are no long priority, too much cover, lots of geological risk, size of Bots teams dramatically reduced over last year. Ironic because KAV was looking to combine the Bots assets into Kanye and float but ultimately the drill failures led to a dramatic change of strategy.
KAV has a pretty huge land mass under PLs in Botswana. And each PL requires minimum spend under the terms of the licenses - so dont be surprised if they try sell them on, before having to give them up.