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I wonder why the identity of the cornerstone strategic investor hasn't been made public at this stage?
They will have a 13% shareholding in the enlarged capital, which will have to be disclosed eventually.

Ella - very interesting, thank you!

Do we have a map showing exactly where our PL082 is in relation to Sandfire licences?

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.

Listening to the Stockbox interview where BT emphasied that he would be spending "most of my time" on seeking a JV partner and his latest KSZ email missive (how much longer exploration takes, than he first thought):

"Without doubt, it’s taken longer than I would have hoped to get where we are now, but my word, I’m so pleased we’ve taken our time and done things properly......We can seek out new partners with real confidence, we can show that we’re serious about what we can do, and we can be confident, truly confident, in the prospective systems we’ve uncovered."

it may well be that his 11 day trip to JNB and Botswana includes some focus on potential JV partners - now that he is armed with a 300 page report too!

Currently up 30%!

Interesting POW rns re Molopo
Will have 88% with 2 holdouts with remaining 12%

ps...I would quite like to hear a lot more from "bigmj" who suddenly posted a few days ago re being a long-term holder of KAV - not only as an enthusiastic placee but is also a client and part owner of First Direct. From what little I know he takes largish positions in several small caps - either as a trader or as a very supportive long-term holder. I wonder what he is here? From what little I've gleaned I believe he is very genuine!

What are his views on BT - has he met him? KAV prospects?

Re BT and the "shorts". There is a whiff of BT blaming the current sp demise on something else (ie not his fault since he's been CEO). There is obviously some sort of issue between Tom W and BT; BT worked for Share Prophets but had to resign/was removed - so bear that in mind when reading SP.

The guerilla investing link (which does not work properly - just search where you land up) is very old news and those of us who did any DD in the past knew all about these claims already. I for one gave BT the benefit of the doubt - for the time being.

If all this shorter stuff is true - a decent RNS will sort it out!!

D220 - that is much more likely ie new data/analysis (which we are expecting a report on aren't we?) "suggests/infers" increased interest in GRS, which needs additional funding to implement new exploration - with a eye on a major partner.

MHead - if that was confirmed, why on earth would you raise money at 3p. Senseless.

Just to add my tuppence worth to Legal's scenarios re KTZ. To my mind the problem (if that what it was) was the BT had given enough info for ppl to work out approximately how long the drill would take. That time line sailed passed and ppl began to be concerned. time drifted on. We all now know why - a longer Xmas break than we had expected and also that 10 days while they were sorting out the drill issue.

In retrospect, at that point BT (knowing ppl were concerned about the delay) could have announced that there had been a delay for reasons xyz but they had been rectified and the drill program was now proceeding again to plan.

Anyway, all under the bridge now and we now have a better defined target at KTZ for our next attempt.

Re Molopo - as others have said we don't really have enough information to go on to judge the decision to withdraw. However, I am assuming - hopefully correctly (!) that this wasn't just a decision by BT all by himself but after consultation with the new team he has built up and with the "old guard". BT will be only too aware that MM is already 30% down on a £400k investment made less than 3 months ago.

I think we have to let BT and the team on the ground to just get on with it!

KeithOz - just a couple of points re Evrima. Their own announcement post the original deal stated they owned 15.43% of KKME. Post the original deal they stated that they would own "between 8.86% and 9.26% of KKME". KAV is now offering some sort of deal for 100% of KKME - (but will only proceed provided it obtains 90%+).

So obviously if Evrima hold on to their entire 15.43%, the deal will not go ahead.
Also they stated: "Whilst we see merit in terminating future funding liabilities by electing to receive consideration in the form of Kavango Resources plc (LSE: KAV) equity, the Board of Evrima believe in furthering its understanding of the project’s potential value before considering a material disposal of our interest."

Maybe the "material disposal" means they would sell down some but not all.

Maybe it's another holder who now doesn't want to sell out (but holds less that 10% of KKME)

All guess work of course!

I think it is useful to remind ourselves what KAV have been doing at Molopo since the Nov announcement:
I. Spectral to perform a single "moving loop" survey over Target 1

II. Kavango to perform soil geochemical analysis over Target 2

III. Kavango to cut cores and send select samples from Target 3 for assay testing

IV. Kavango to create a unified regional 3D model of MFP using all available borehole data

V. Kavango to send thin sections of core samples, taken from Targets 1, 2 & 3, for university analysis

VI. Kavango to contract Bell Geophysics to perform gravity data analysis over the northern part of the MFP

Quite a lot including T3 assay testing and Ts1 2 and 3 - core samples for university analysis.

It appears KAV have seen enough to want to continue. As far as I can see the only material thing that has changed (apart from data) is the SP and exercising the option would have roughly increased the number of new shares from 20m to 30m. BT is now renegotiating the terms having allowed the option to lapse - which is fair enough in my book. It also simplifies the deal, which before seemed unnecessarily complicated.

If the current SP was 5-6p currently, I believe much of the current questioning of strategy would evaporate. The SP is very sensitive to trading volumes and a bit of "good news" should reverse the current position.

Finally, for such a small exploration company we have now assembled quite a portfolio of decent looking targets (some of which are now even better understood) - KSZ, Ditau, KCB and the latecomer - posssibly Molopo. Not bad!

OK slowly - can finally see where you are coming from!

I think we are both right as it happens but it all depends....

You are correct if you recycle (sell) your original holding so that you are never holding more than 1 share at any moment. but to achieve the maximum profit under your scenario you have to ditch your entire original holding and all the warrants. In practice I suspect there are many combinations of holding/selling all or part of the original holding and ditto with the warrants - depending on a multitude of individual circumstances and views about the company and outlook for it.

I believe I am correct if you exercise the warrants (having not sold the original holding) so, in effect, you have bought 2 separate chunks and have increased your overall holding and then having the option of selling as and when.

Probably the difference between a trader and a long-term holder :)

Anyway at least the SP is perking up a bit and I'm sure we are all looking forward to what should be quite a lot of substantive newsflow ahead.

ss - thanks for your explanation but I still don't quite get it! Maybe I'm just being dim :)

At the end of the day you have bought 1 share at 5.5p (and sold it at 12p for 6.5p profit) and as a completely *separate* exercise bought another share (the warrant exercise) for 8.5p and then sold that for 12p, realising a gain of 3.5p. So 2 shares bought (and sold) - no? I understand that you have made 10p profit overall but that is from 2 share purchases - so what is the average profit per share? Or what is the average purchase price?

When you said ".....exercise their warrants instantly selling the resulting shares." that requires the purchase of those shares and is a separate purchase for the original 5.5p shares.

Also " ....They've been sat on an average of 5.5p, waiting for the chance to sell and to make an instant profit on the warrants. " That is true until the second those warrants are exercised in which case you have to then immediately cough up another 8.5p. Whether you have sat on the original shares or sold them is immaterial to your overall cost. My question would be in buying your original shares and exercising the warrants how much have you spent in total?

The correct comparison for the 5p in the market buyer is that he also buys 2 shares but at 5p (to compare with your 2 shares bought at 5.5p and 8.5p). Surely on any analysis his profit must be greater?

Anyway - enough navel gazing. We can agree to disagree - Time to get out and enjoy the weather!

ATB

slowlyslowly - an interesting point although I'm not sure your calculations (and conclusions) are quite correct!
You said:
"But, if this works out, the warrants mean your profits will be better than they would have been if you'd just bought at 5p. [Say it hits 12p. For every share you took in the placing at 5.5p you get 6.5p profit from the share and 3.5p from each warrant. Warrants were 1-1. So that's 10p profit per share. If you bought at 5p in the secondary market, you'd only have got 7p profit per share."

In your example if you bought 1 share and then exercise your warrant, you end up with 2 shares that cost you 14p (5.5 + 8.5) - at an average cost of 7p/share and so 5p profit/share at an sp of 12p. I think your "10p profit per share" is actually the profit on 2 shares (having exercised the warrant you would hold an additional share on top of the initial one you bought at 5.5p.

So, actually you are worse off than the person who bought in the market at 5p/share because your average is 7p/share. Assuming the sp is 8p (and you don't exercise your warrant) you are still worse off as you paid 5.5p compared to the 5p bought in the market.

I think the obvious conclusion that you can draw from your example is that the quantum of profit is greater (for the placee exercising a warrant) but that is only because he has twice the number of shares.

Happy to be corrected!

The Swan - yes and Asiamet new tweet clarifies that ITE review will use 2019 FS. That then completes due diligence for DOID, (who can then execute docs). Separately the 2019 FS will be updated (for release H2)