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That is exactly what I thought... Cashed up @ 5.5p placing specifically for this drill campaign.....
Knocking on the door of 6p again soon
All good for Zack's ... charts.....
why are we even talking about placings ? - in August we had £3.5 million in the bank and a warrant bank of £7.5 m which should see us through to end of 2022. Also we have partnerships with our drilling company and TDEM operator.
I think they have sufficient funds in the bank to complete Target A,
drill 2 holes in target B and do first stage of exploration on the KCB. I think they probably want to access more funds before potentially accesssing a second rig so that they have a rig dedicated to the KCB and to the KSZ. The exploration on the KSZ could take some unexpected turns so I don't think they will want to leave themselves short of funds. They may wait until they have drilled target B but that is likely to be after the end of November.
I was obviously wrong about reading Ben's tweets as a reassurance to the last placees due to another fund raise about to drop, apologies to anyone I upset be suggesting this.
It seems we are really lucky and have hit something worthwhile early so hopefully we will all enjoy the rewards.
I'm confident we won't have a fundraise RNS tomorrow.
What do you suspect that they need additional funds for, over and above the current KSZ and planned KCB drills, which are both fully funded?
But if it's purely through a deal with Equity Drilling the end of the week will be the absolute earliest we're likely to see something as I think KAV feel they need to check the holes have been drilled correctly before tying themselves into a deal.
I’d be positively in favour of giving a drilling company cash plus shares in order to pick up the pace and/or get started in the KCB in parallel, particularly if the shares were subject to a lock-up. I wouldn’t view that as a placing in the sense that strikes fear into the hearts of small cap investors
No -It's the same one :-). I said last week that I would withhold judgement until Monday.
Yet another fundraising suspicion??? ??
They may wait to drill target B before fundraising but I have a suspicion we may see an announcement in the morning - I could be totally wrong. I don't see an additional fundraise as bad news so long as KAV uses the funds get maximum value for shareholders ( I realise that anyone who took part in the last funding with a view to a quick flip wouldn't appreciate it). I think that they probably do need to wait until the first 2 holes are surveyed before doing a deal with Equity Drilling. I suspect everyone is itching to get more drills on the ground.
Ella, they need to wait for Target B (2 drills) first which has an 8200 siemens reading which is indicative of massive sulphides before any new fundraising. From memory the first two hole targets had readings in range 2500-3000 which is entry level massive sulphides and Ben has been coy about the first drill even though they should have split the core by now and conducted XRP analysis, all he's said is there was evidence of sulphides.
I made a mistake the ggp jv started in 2019 not 2020 so my numbers are incorrect. Apologies for the confusion
Assuming, that they have found 'something'in the first two holes then I think they could/will either do a placing with a fund or get a VERY good deal with Equity Drilling and bring in either 1 or 2 rigs to put up to 20 holes in the licence that they are currently drilling before potentially selling it while retaining an NSR. I don't think KAV will be able to take the first resource to JORC but neither do we want to sell it cheaply. I'm not really convinced a JV would get much more benefit than going down that sort of route as they generally end up with a small NSR if they don't fund their own portion after the Major has funded their obligation. I think a sale of the first licence and then try to develop the rest to JORC.
GGP jv a success you say? Well its sp has 'only' doubled since having announced the jv. Other exploration companies did (many) multiples of that. KAV sp fivefold in the same time period. Ask people on the ggp board if they are happy. Its simple you give away the upside. Once we find massive sulphides we don't need a partner I would only enter a deal after a resource definition because, ageed, we are not miners. Look at osino resources over in Namibia they have about double our ev and drilling out a gold deposit with 8 drills looking to add more. Without a jv partner. Is that turbocharged enough?
TK95 - expecting KAV to go at this alone whilst demonstrating conviction also arguably lacks realism.
Because it makes more sense to bring in a major who can turbocharge exploration. If it's a well crafted earn-in arrangement, all that heavy lifting can do wonders. Perhaps the best example of this in recent years is GGP. Every earn-in milestone should out greater value.
Keep in mind, any deal will ONLY be within the Hu****si area limits. Which means KAV can continue to pursue exploration over the remaining Central and Southern KSZ licences it controls. In addition to its other interests.
I’m not necessarily saying early and I’m not necessarily saying JV. I’m saying it’s great that KAV will have options. Most explorers have very few or none, even after a decent find
Hard to understand why most people here seem to get so excited about a jv for a bit of downside protection whilst giving up a lot of upside, control over newsflow, potential for bidding war etc
If it is all so scary why not sell some kav and buy blue chips. Shows total lack of conviction imo
For me the single most attractive thing about KAV is the likelihood that any sort of discovery (and possible even something promising short of a discovery) will lead quickly to a deal which enables KAV to realise value from it. It is a really common problem with small cap miners that they find something decent, the SP briefly spikes, and then the awful realisation sets in that the find is not quite exciting enough for anyone else to be interested and that the company itself will need years and years, and masses of new equity and debt, if it wants to prove it up further and exploit it. Cue dwindling share price. In fact, I would say this is perhaps the single most common outcome in junior exploration. I don’t think we’re going to have this problem at KAV. If we find something, there’s a deal out there to prove it up and exploit it, and we shareholders should make a lot of money. I don’t think the current SP in any way reflects this key difference between KAV and the average junior explorer
Thanks KeithOz - very interesting interviews where the comments you have highlighted, taken together, would suggest that KAV have presented/pitched their KSZ modelling to other "firms". It was actually interesting listening back to these presentations now that we have results from target area A.
Re interest from majors. Meetings started a long time ago. Everyone is well aware of what KAV are up to, they are just waiting on assays. Take a look at this Ben Turney Shares Magazine interview from June 25th. At 12.55 he shows un underside view of A2, and says "I gave a presentation recently to a large firm, one of their main geologists was in there and we had a bit of a moment when we pulled this slide up, a bit of an unguarded moment, and his exact reaction was 'wow, look at that' '
Next day, he shows the same slide in a Stockbox video, at 18.25 says "we've had comments from people who really do know what they're talking about, I've got to be a bit careful about what I say here" - an interesting change, maybe someone has pointed out the sensitivity of his earlier statement!
Thanks for all the responses folks. I guess one of the things that any major will need to consider is potential/likely interest from other rival companies. No major can assume that they can make their move simply when it suits them. I would also expect interested majors to have done some research in KAV, and unless they found the whole thesis regarding KSZ (and comparisons with Norilsk/Voisey Bay) to be lacking in any real substance, you would also have expected them to have made contact with KAV 'many moons ago' and at least have registered their interest. Possibly, they might even have kept some form of contact going, to start laying the foundations for future talks pending the outcome of this campaign.
I'd be very surprised if the first contact in these situations only happens post drilling results. The prize on offer is potentially huge after all. Maybe BT might answer questions about this (avoiding price sensitive information).
I have to completely disagree with you there.
KAV need to only prove up each target at a time. And, if they do, big majors will line up with a bidding war and we can just sit back and watch. Big finds are rare these days and any major will fight over a large proved up resource. KAV can sell each proved up area on a piecemeal basis and derive the value which can be used for proving up the next target. Ben is a smart cookie and he is not going to sell the whole thing for peanuts.
I know references have been made about the majors like Anglo American, Rio Tinto etc. However, I would add that it has been mentioned that even the biggest gold miners are also looking to diversify. So I would not be surprised if we hear Newmont or Barrick show some interest.