Kavango Resources Share Price (KAV)

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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.