ACCELERATED BOOKBUILD
Proposing to raise £3m:
- At 1.2p per share
- Issue of 257,113,862 new ordinary shares
- Underwritten by Purebond Ltd for a minimum of 135,000,000 New Ordinary Shares
USE OF PROCEEDS
- Use of funds include:
- Diamond drilling at Hillside/Nara gold belt
- 5,000m diamond drilling to prove Kara Anticline is a copper-mineralising system
Completion of Hillside acquisition
Use of funds include:
- Investment in Kavango Mining (KAV) to increase Gold production
- Acquisition of additional projects
- Working Capital
"We are extremely grateful to Purebond for their continued strong support of Kavango.
As the prices of gold and copper continue to rise, this is an ideal time to make major discoveries in both metals. Thanks to Purebond's powerful financial backing, Kavango has developed its projects swiftly in Zimbabwe and Botswana. Today's £3.08million accelerated bookbuild will enable us to build on this momentum.
In Zimbabwe we recently announced results of two successful gold exploration holes at our Hillside Project. Highlights included 7.2m @ 9.95g/t at Prospect 2 and 2.53m @ 29.08g/t at Prospect 4. We will use some of the funds raised in the bookbuild to take the diamond drill rig back to Hillside to test the strike, width, and extent of these possible discoveries...
Meanwhile, in Botswana, we are about to embark on a 5,000m diamond drill programme at the Karakubis Copper Project, part of our extensive 7,500km2 mineral rights package in the Kalahari Copper Belt. Having recently completed detailed surveying and mapping, we believe we have identified the right geological setting and structural controls for potential large-scale copper/silver deposits across the Kara Anticline.
It now remains for us to test whether the Kara Anticline contains a copper mineralised system. Physical indicators are encouraging, with the presence of pathfinder minerals galena and sphalerite...
We are keen to start this landmark drill campaign and will use some of the funds raised to deploy a second rig to the Karakubis Project. This will halve the time it takes for us to complete the programme.
If any existing Kavango shareholders wish to participate in the accelerated bookbuild, please contact our broker First Equity."
Ben Turney, Chief Executive, Kavango Resources.
Kavango Resources (KAV)