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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
The next RNS will be the Purebond £4.6m x 1p financing?
IntraDay?
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
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.
Maybe because they are confident of making a discovery.
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.
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.
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
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.
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?
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.
It looks to me like ENRG Elements had to sell, and fast. Perhaps they weren't in a position to negotiate.
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.
This is a very risky acquisition. The strange thing is why is KAV not getting the historic data and that is being kept by the vendors and paying in cash?
"In the event there is a delay in completing the Stage 2 financing, Purebond has indicated to Kavango's board its readiness to lend the Company sufficient funds to complete the Acquisition." Major backing from Purebond here. They obviously want a return on their £6 million investment into KAV at 1p. All lining up for exploration in Zim and Karukubis here over the next two quarters. I can't see too many holders here letting go of their cheap shares now and with more news incoming. Today should signal the beginning of a steady climb up.
We could do with hearing from BT about the forthcoming plans, as they sound really exciting, but maybe he needs to close the financing first?
KAV are intent on buying us prospective copper real estate then - 1.3m quid of the 4.6m coming from Purebond to be spent acquiring these 6 licences. Hard to know if this represents fair value - and no details from KAV or ENRG re how much historical spend thereon.
I think this is the start of a news and potential deals campaign - for that reason alone, maybe a good time to take a position here. Going to take a long time for all this to come to fruition but you got to start somewhere. And you got to have a plan.
Drilling is about to commence in Zim as well. This from BT himself:
"We could keep the drill bit turning almost indefinitely with near-surface, untested targets that have bulk-mining potential."
Like I said, exciting period of newsflow coming up here for sure.
Ben explains in Telegram that ENRG have been somewhat forced into the sale to raise funds to keep their primary Uranium asset running, so an opportunistic purchase. DC has already done work on the license area and sees its potentially linking a system with our existing licenses. As they're buying 90% of the two companies they will now have access to the data (just as they now have access to the license area) it just means the data and licenses remain in the existing companies.
Thanks OT - I was thinking that DC would have advised this move, but good to have that confirmed and that they've taken advantage of the situation with the other company.
HTTps://www.youtube.com/watch?v=wHvqusJoRi4
Ben explains how they got the new PL's at a good price due to the Coup in Niger and the need for ENRG to sell.
Thanks Elric, touches on the Zim opportunity/progress at the end too.
This is all coming along rather nicely at moment. I am in.
Drilling to start on 9 October in Zim with our own Rig and according to BT: "either one of these projects could have 500k ounces in them, and there are dozens of them."
Zim is to start in a few weeks. KCB to start in Q1. This is very cheap!