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At the end of the day, all we have to decide is whether the current share price represents upside from here, given what's on offer and what newsflow is coming up? That's a resounding yes from me, but each to their own. Financing news to land soon and that will see the remaining stock in the 0.6s being taken up imo.
It looks to me like ENRG Elements had to sell, and fast. Perhaps they weren't in a position to negotiate.
QUOTE: "what we have learned today is that they want to sell them. More specifically they want to sell them for cash, with no retained interest. I would have thought the obvious reaction to that, based on the “watch what ENRG do” principle, would have been to take a somewhat dimmer view of Karakubis. "
100% spot on.
Hi, former shareholder here. Somewhat baffled by this transaction. I remember that Ben has talked about the ENRG having licences adjacent to Karakubis before. Unless I’m at cross purposes here as to which ENRG licences he was talking about, what he said about them before was that ENRG were doing various work on their licences and that Kav would be keeping an eye on that to see what they could learn about the prospectivity of Karakubis. Makes sense.
Well, I don’t know whether we have learned any technical info from ENRG about their licences, but what we have learned today is that they want to sell them. More specifically they want to sell them for cash, with no retained interest. I would have thought the obvious reaction to that, based on the “watch what ENRG do” principle, would have been to take a somewhat dimmer view of Karakubis. Yet not only are Kav not doing that, they’re going the opposite way and actually buying the ENRG licences off them.
Anyone else confused?
I'm not sure how you can say that £1.3m for a land package that could be barren is "cheap as chips" but there you go.
Lets hope their confidence is finally rewarded.
Wow. I love popping in here to get the optimistic vibe so early in the morning. Cue Robert Duval, stuck in the kgalaghadi: "I love the smell of HYPE in the morning"
"spoils closer to the surface" at the Namibian border. Really? That's why so many shallow deposits have been found there lately, right? Not quite. Dave C will be enjoying getting someone to fund his BA returns to his old haunts in the country he used to live in, no doubt.
WTF would anyone pay so much, through the nose for a bunch of moose, sorry oryx, pasture? Who pays the piper plays the tune, the elusive Prof who reckoned De Beers had missed the obvious Au; that came to naught? The expert geofizz guys who found graphite in the EM conductor; naught? Others; same impact.
Now the massive overpayments in very short order for nothing of real merit?
"Confident of making a discovery?"
Surely anyone can see these guys have been ramping the same for years and all they've discovered is dusters and how to burn through funds, and take home fat paychecks, with no sharehlder return whatsoever.
Ah, but there's always another one around the corner, right?
Still seeing absolutely nothing to entice me back in, quite the opposite in fact? Glad I've stayed out so far.
All IMHO, DYOR and GLTAH
The past is the past Bozi. They have high confidence in Karakubis and a results based deal will work out more expensive if they make a discovery which is their high expectation.
Bottom line is this is cheap as chips for what is coming up here. Lots to look forward to.
Well that's pretty naive from them if so Legalwolf.
We're still a junior and we can have as much confidence as we like that the geology is right but we've got to box clever and defer as much of the consideration as we can get away with.
If we consider that companies will often pay up to £250k for licence areas, it's understandable we're paying a bit more considering the strategic importance.
I just wish they'd look after shareholders a bit better when using funds. The share capital has boomed here over the last 2 years and that's without warrant exercises. We still, for now at least, have nothing to show for it.
Maybe because they are confident of making a discovery.
I'm pleased to see the acquisition itself as it means we now have a contiguous land package out in the KCB.
However, I can't help but feel the terms are a bit disappointing. Why are we giving them $2.5m Aussie with no conditions precedent?
A better deal IMO would have been a small up front payment and then further payments in the event a resource is declared via a JORC standard report. Again a further payment upon nameplate production, etc.
Thankfully the exchange rate means we're looking at c.£1.3m.
Great news - financing “imminent”, have secured Karukubis contiguous acreage, and will be drilling in Zim and Karukubis in Q4/Q1. Discovery time hopefully? Cheap as chips and let the rise back to 1p begin. GLA
The next RNS will be the Purebond £4.6m x 1p financing?
IntraDay?
Great News for many reasons.. DYOR...
The right post code
Dave Catterall our advisor discovered Zone 5...
Kav are mixing with the big boys like Sandfire... Land grabbing in the right area near the Namibian border where the
spoils are closer to the surface...
Possibly the reason we have such wonderful financial backing
ATB
Bozi - they have made Zim sound like a very high probability opportunity. With PB to account to as the new paymasters, they can't really afford to put a foot wrong, especially after the failure at B1. So the management here will be as aligned and as motivated as you can ever expect, because their jobs now depend on it. It's little wonder BT is moving to Zim to oversee the whole operation. High stakes for all concerned now. KCB is the highest probability project in the Botswana portfolio as well. Overall, it feels like a scenario and situation to back, and definitely a defining 12 months coming up for sure.
Those positions will likely all be unwound at around 0.9p Legalwolf, if not sooner.
The positive here is that if it comes off for Purebond with an average of about 1.2p then it should come off for any KAV holders who have averaged down or manage to do so in the future.
It's going to need a pretty mammoth result from Zim or a breakthrough at KCB. My preference for the latter, as whilst it brings in new capital requirements, it also transforms the company into one with a potentially decent discovery/asset.
The naysayers are kidding no one, just look at the shares being accumulated under the hood here.
The only warning I got today, and which speaks volumes, was not getting filled below 0.6p today. Even with breaking up the order. Will try again next week, but think the ship offering large stock in the 0.5s has sailed or is about to. All imo and GLA
You seem to forget zone 5 has taken at least $500m to develop requiring a lot of debt and new equity so return on capital employed is significantly below the returns you state. The whitewash and £4.4m is massively dilutive and give Purebond free range to screw investors over in Q4 24 when the next raise at 0.2-0.5p is pushed through. Don’t say you weren’t warned.
Reading up on KCB is very interesting.
Make a discovery in the KCB and Kavango's share price will be 20-30 times higher in a flash imo.
With funding from Purebond to either drill or have the financial firepower to pretend we will drill and secure great terms on a JV is very exciting and seriously missed by the market.
Dave Catterall has made significant discoveries and he works mainly with Kavango (80%) and Cobre.
Directly responsible for Zone 5 underground discovery that is currently subject to a $2bn bidding war. Yes $2bn.
It is amazing that Kavango shares are trading at 0.6 range and should be well above 1p with the Purebond support.
When the whitewash is announced and that can be any day the shares will rise very quickly with very limited stock under 1p.
I sense we will have an update very soon with Dave being with the new exploration manager.
You can also see Sandfire and Cobre working together to fly over the land.
'Purebond deal is still going ahead on the same terms and the prospectus is currently being reviewed by the FCA' - market needs to wake up very quickly.
Strong BUY imo.
From Ben T in telegram
"I’ve just finished a long call with Dave
He’s agreed to do a Crux Investor interview with me. He’s heading to another project for a couple of weeks this weekend, so we will try to fit it in when we can
Dave will present our “leveling up” KCB strategy, talk about his experience in the region and what he likes about our ground"
The bottom line is you are getting the possibility of gold finds in Zim, drilling of the best prospect at KCB, and a likely return to Ditau, with £6 million to attack them all with.
If we were trading at 2p fine, but how can anyone argue against the risk to reward proposition from 0.6p for all the above? No way do we trade here for much longer and on the financing RNS landing.
So I say keep accumulating whilst you can, because the positive tweets from KAV/BT all indicate that this new phase in KAV's journey is kickstarting into life. All imo and dyor
One of these is near Caledonia. £1.8bn mcap.
"On declaration of a code-compliant (e.g. JORC or equivalent) gold resource containing in excess of 500,000 ounces of gold (inferred category or above) at the Nara Project"
"On declaring of a code-compliant (e.g. JORC or equivalent) gold resource in excess of 200,000 ounces of gold (inferred category or above) at the Leopard Project"
They mentioned a pipeline of a dozen or more options. So if each one is 500,000 ounces of gold. Thats a mid-tier in the making.
They're targeting a minimum of 500,000oz per licence and they have dozens in pipeline. If it doesn't meet that threshold they discard that option and move to the one that does.
Also...
"Dave Catterall, Hillary & Brett are out in the #KCB at our Karakubis block with our team on the ground and new exploration manager Leon
IP surveys are complete. We’re interpreting the data & tying that in with what we’ve learned on the ground"
https://twitter.com/KavangoRes/status/1700467451190747343?t=2F6MaDGMm1iAeM6dEs4AeQ&s=19
Stop fibbing tradedesk.
Their potential is for tens of thousands of ounces - the RNS is clear on this. Not worth relocating for.
Could be very significant assets. Diamond rig has been mobilised.
Hoping to hear something on KCB as well. Dave Catterall is there I believe.