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Ss - you are correct re the highest price paid by the Purebond/concert party over the preceding 12 months.
Without the whitewash waiver Purebond/concert party have to make a Rule 9 bid if they go over 30%. That bid has to be in cash and only subject to a 50% acceptance condition before going uncondtional. That 50% includes their 30%.
ie it is not a vote, as such, but acceptance or otherwise of a cash offer. What this means is that if they got to say 55% - they have to pay out to those who accepted the cash offer. Everyone else stays as they were (ie being a shareholder).
A month ago I posted that I had become pretty disillusioned (as an LTH) and concluded:
"You might wonder why I still hold. In fact over the last 6 months I have sold down 2/3rds of my holding but am keeping 1m "just in case".
I hope the new shareholders have some input/control over where KAV is heading in the immediate future (ie strategy)."
I have liked what I have read and heard from KAV over the last few days - so much so, that I have bought back today some 350,000 shares in different tranches. It was quite difficult to get orders filled and even a fill and kill at the full ask failed. A bit more widespread enthusiasm and this could really get motoring. A change in sentiment might be around the corner!
Never mind the longer-term shareholders like us who must all be significantly down (75% in my case, for the shares still held), I wonder what our new "strategic investors" are thinking - down some 45% in just 4 months? Apart from the strategic investors, another £1.5m (part of the £3.0m announced last October) are also down 45% (unless they flipped/forward sold immediately after).
BT must be under pressure from pretty well the entire shareholder base. Have to find one of those elusive rabbits and a hat!
Legal - it looks like that but it depends what you mean by "drill campaign". I think it will be a while until the drill actually turns. BT is tweeting: " ... building our understanding of the project's underlying geographical structure....". How long will that take?
I don't understand why KSZ cannot be progressed simultaneously?
Maybe KAZ just has a dud KCB portfolio? Most of it selected before BT's arrival on the scene - chosen by what he refers to as the old guard. He has been pointing the finger at them in his "boots on the ground" stuff. A bit unedifying I thought putting that in print even if it had some grounds to think that. Not exactly a great incentive for Gumbo.
I'm still irritated by those recent options (multiples more that last year) in a year when the sp has collapsed by 80% and on top of that the reprice of the old ones. What kind of message does that convey to shareholders and the market by our PR guru?
Metal I know I being facetious but why not just simply mention what the AM was for - in the announcement - to avoid any speculation? It's these small things that find irritating. Even the RNS re options had the wrong date in it - can't a financial journalist manage to check this sort of stuff before it's released? Just gives a sloppy impression....ok rant over!
I agree. Although disillusioned with BT for the reasons I described (I also gave him credit where due too). It's the corporate strategy I was focussing on in my post. Rather than changing BT we need more input/direction from chairman/board/new investors to avoid the highlighted issues. BT is inexperienced despite what he might think! That options RNS should never have seen the light of day. Ask BT why it was released when it was - what does 5.30pm on a Friday tell you?
I am a long standing KAV shareholder and gave BT the benefit of the doubt over some concerns that were raised when he first appeared on the scene. However I have become increasingly disillusioned - probably partly driven by the dreadful sp performance, especially over the last 12 months.
I can't blame him for the land portfolio he inherited or for any geophysical misinterpretations - the latter is not his area of expertise and to be fair he has tried to rectify that with new hires/consultants etc. I also give him credit more the new monies/shareholders he has brought in.
It is the evolving strategy I have more of a problem with. I particularly dislike the continued issue of paper/warrants like confetti. The total issued share cap plus warrants is now in excess of 1 billion! The so called warrant bank is particularly fatuous. I don't think he really understands the long term effect of dilution. I disliked the tie up with POW - I think I'm correct in saying that he and PJ are old mates from Manchester. Don't get me started on Kanye. The Botswana listing too. I haven't looked back for the detail but I am sure there are some outstanding assay results (why no update?). Strategy paper? Why isn't the KSZ "B " not being drilled right now? I was under the impression that once POW had finished with the drill - it would be moved to the KSZ. The moving concepts of Proof of Concept, Year of Discovery, proving up theories with "new" technologies etc etc. Basically just fluff - demonstrating "success".
BT is a good communicator and I feel he has a good grasp of the technical side of things for a PR person. What is less convincing is why a "penny dreadful" financial journalist should be suited to running a public company - what are his qualifications to do so? He has dabbled in the past (NTOG?) but do not think he has demonstrated much success on that front.
Slipping out an RNS after hours (5.30pm) on a Friday should come as no surprise. And guess what - a whole pile of, imv, completed unwarranted options (I exclude the contracted new hires here). Compared to last year, the numbers are multiples larger. What control is there over this when all the approvals are coming from people awarding themselves options?? These are now "no lose" options. If earlier options now look a bit of a stretch with a declining sp - no problem, just change the terms! Optically I think that is appalling. Has BT also awarded himself options he can continue to hold even if the leaves KAV? Incredible if so. Busy working on these self awarded options might explain why the strategy paper is "late"!
You might wonder why I still hold. In fact over the last 6 months I have sold down 2/3rds of my holding but am keeping 1m "just in case".
I hope the new shareholders have some input/control over where KAV is heading in the immediate future (ie strategy).
I think BT will have to do a pretty persuasive job in order to explain the merits to shareholders of a Kanye IPO on the Botswana Stock Exchange (BSE), particularly if he is viewing it as an alternative source of finance.
It is a tiny exchange: the total value of trades over the last 6 months was approx US$50m. There are only 35 companies traded and 75% of the those (6 months') trades were accounted for by just 3 companies. There is an AIM company called Botswana Diamonds, which for historic reasons 10+ years ago, is also listed on the BSE. Admittedly it is a dual listing (rather than a listing of a spin out vehicle). It has a market cap of of £9-£10m ie about the same as KAV. The total value of its shares traded in the last 3 months was precisely £185 (that is: 185 pounds!).
I'm sure it is possible to juggle around with various figures and scenarios, warrants, convertibles and other "sweeteners" that can complicate matters and so, on those occasions, I often find that it is helpful to stand back and look at the real issue that needs addressing, namely:
if Kanye is listed on the BSE would it be accorded a higher valuation on that exchange than that which currently exists within the LSE listed KAV valuation?
I suspect many KAV shareholders are holding mainly for the KCB and, however it is depicted, if KAV's KCB interests are to be diluted they would probably much prefer part of Kanye to be held by a major mining corporate partner rather than by a bunch of anonymous PIs and possible institutions(?) on the BSE.
I see KeithOz subsequently issued some soothing words on this subject, following a chat with our revered leader - looking forward to hearing the same to us all from BT!
Re the JORC compliant report. Isn't this required in any event as KAV have to issue a prospectus, as I think they ran out of headroom re issuing shares in respect of Kanye deal?
Per announcement:
"Subject to and conditional upon the publication of a new prospectus by Kavango including provision for this Acquisition (the "Prospectus") Kavango will acquire Power Metal's 50% interest in the Kanye JV."
Whether this has anything to do with a listing is another matter!
MT - there is an interview on Sharetalk with BT that I haven't seen much publicity about. Scroll down the link to get to interview.
At 10mins he is asked directly about the Ditau assays and replies that they have some but are waiting for other results ("the multi element results") before releasing together. Then they can "talk with confidence about what the system looks like".
The whole interview is worth a listen as it covers quite a lot of ground/projects.
https://www.share-talk.com/kavango-resources-lonkav-ksz-proof-of-concept-drill-campaign-final-report/#gs.9s522y
JP - combined with BT's recent email comments and this interview - I strongly suspect that there won't be much KSZ drilling this year. He mentioned the report author is away for a month and they need his input to fine tune B1 etc. On top of that he mentioned hiring the right drill contractors is difficult with their commitments (or words to that effect). I think he said (re drilling) ......" or early next year". Patience is his new watchword!
Most people could probably live with that, provided the SP didn't continue to dribble downwards.
At least with KSZ work proceeding (pre drilling) in the background there should be newsflow from their other projects.