Member Info for Legalwolf

Is KAV starting to stir and catch this gold rush? Latest tweet from BT (copied below) suggests some positive gold news could land here fairly quickly. Last few trading sessions to get in here in the 0.7s me thinks. All imo and dyor

"We’re underway at Hillside. Our #gold exploration strategy in Zimbabwe is simple

We are looking to explore projects that have multiple high-grade gold zones & untested potential for bulk-minable deposits. The “secret” is the material between each zone. If that has enough grade…"

30% down so far on what sounds like a duster, or that seems to be the market’s interpretation of outcome.

In theory, it could also be as a result of action taken by creditors, but I would have thought that any creditors that are out there, would be owed by the parent company Caracal Gold, and take action against it, and not the subsidiary company? But this would need checking back of transactions. I suspect its more to do with late filing/inactivity, and not saying it will be the case, but it wouldn't actually surprise me if another notice follows shortly. All imo and dyor

The mine IS owned by the subsidiary Caracal Holdings Ltd. All the documents (Prospectus, Financial Reports, RNS) make this clear. So the subsidiary is about to be struck off, unless it/GCAT can show good cause why that should not be the case. The reasons are most likely to be due to inactivity/late filing (and not responding to Companies House). But then logically, a similar notice should be issued in respect of Caracal Gold itself, unless it's only the filing requirements in respect of the subsidiary that have been ignored?

Who knows what is what when it comes to GCAT? I'm guessing none of this was covered in the Q&A, and only RM can really comment and re-assure I guess. All imo and dyor

"The Company's obligations in respect of the Loan Notes shall be secured by a share pledge granted by the Company's subsidiary Caracal Holdings Ltd over Kilimapesa Gold Pty Ltd, the 100%-owned Kenyan operating subsidiary of Caracal (the "Security"). In addition, the outstanding sums of the existing loan notes owed to the Subscriber (which were mentioned in the companies audited financials for the period ending June 2022 and are summarised below) will also benefit from the Security. The Security will be released upon the approval of a prospectus by the FCA."

This is what I was referring to. If it means something else, then do enlighten us Folio.

"....presumably because the investors who bothered to submit questions didn’t think it was an issue."

Well more fool them then! It is an issue because one of the biggest creditors (ORCA I think) hold the mine as security don't they? And GCAT's ability to pay them back and/or release that security depends on its finances and the Prospectus.

Happy to be corrected if I have misunderstood this?

No change of sentiment Chesh - I remain eagerly awaiting results for this well, and therefore continue to watch it closely. I'm of course hoping the results will be positive, like everyone else on here.

BTW - just watched the Noble video clip. I didn't takeaway that it was negative, and why would they bother doing a voluntary and negatively toned short video clip in the first place?

It's maybe also worth reading the RNS from Tai 1 and Tai 2 to try to understand all this. There was reference therein to deeper targets and an explanation of the different targets and formations.

Or just wait for KeithOz!

Unless the BOD have already confirmed this is not the case, I still think the licence renewals might be what is causing a delay to any financing. Without security of tenure over their licence packages, and the Cameroon authorities unexpectedly deciding to carry out a "wider licence renewal process", how can ORR expect any financing to come in right now? So is this where things have stalled? All imo and dyor

I will listen to it myself, but is the RNS explanation the same as the Q&A explanation? It seems to go beyond what was said in the Q&A about the delayed accounts, but that's based on what people on here have reported about the Q&A explanation, rather than having listened to it myself.

High risk this indeed, but I think most investors here know that already. Did RM address how secure GCAT's tenure is over the Kili mine in view of its finances, and if they don't get this finance? I'm thinking really of its creditors.

Updated broker's note contains the following:

"With net proceeds of £5.9m at its disposal, Kavango Resources is now probably one of the most well financed micro-cap exploration companies listed in London."

"Since the middle of July this year, the shares have traded below the 1.0p placing price and continue this pattern today after the issue of second-tranche shares, with a discount of around 25%, at a bid-offer quote of 0.70p-0.75p. Pricing anomalies such as this do not last for long. We therefore recommend investors take advantage of this short-term buying opportunity to invest in a well-funded exploration company that now has the financial resources to advance its projects in both Botswana and Zimbabwe. Moreover, the prospect of near-term revenue generation from the gold tailings Nara interest provides an extra dimension to the situation."

And it's good to see the decent buys coming in now in the 0.7s. Hopefully there will be decent early results coming out of this Zim gold drilling. GLA

Let the fun begin. Diamond drilling will hopefully confirm these encouraging initial results. Re-rate potential here?

Yes, nothing to be done now but wait, and I guess nervously sweat it out if you have a very large holding here! Hope it works out (despite my grave reservations).

If I recall correctly Bebeto, didn't they carry £16 million losses into last years' accounts as well?

Is it possible that any frustration is down to being ~ 400m out on the geology, and the cost and time implications of that? She was the geo after all, that would have been responsible for all the geological modelling and appraisal of the Tai target, and maybe decisions over 2D/3D seismic? I also can't imagine Mike is having too much fun either, given the drilling issues encountered to date. I would imagine that both are carrying a lot of responsibility, pressure and nerves at the moment? All imo

Purebond are not stupid. This is the perfect time to be backing KAV's gold ambitions in Zim. This is not wild cat drilling, but drilling deeper into projects that are known to have gold already, with historical mining of that gold, but completely under explored and little to no drilling. KAV believes the projects have the potential to host bulk mineable gold deposits and are looking to prove up the size of the resource in each project area. The ambition is move quickly from explorer to producer. If any of these Zim projects comes off in the way they hope, it will be massive for them.

Purebond will see the size of the prize on offer here, even before you get to the KCB. Just needs a positive RNS update from Zim (and I also don't think it will take anywhere near 3 months to get lab results back). Load up time remains at these low levels.

I haven't listened to the Q&A, but I would be alarmed if the funding is still up to 5 months away (Q1 2024), and whether/how GCAT will be able to fund itself until then? One also has to wonder whether the reason the accounts are late (and there is no CFO), is because it would reveal the fact that the company cannot be signed off as a going concern right now? Therefore, I don't think Bebeto's views and risk analysis is alarmist at all. I would most certainly NOT want to go into this suspension holding a large amount of stock here for the reasons he has highlighted. But each to their own in terms of analysis and risk assessment. All imo and dyor

I can't see any real movement in the share price until they start turning the drill bit again, or announce plans for that. And if those plans are to go back to Victoria, then I can't see the share price moving until they actually produce some decent gold results from there.

Struggling to sell the property and second Rig?

Wyn - newsflash - almost all here are concerned with the share price.

Et another negative post JP2000😴. Have you ever heard of extending option periods? Happens all the time and why would the vendor not agree to it given that they can see the progress being made by KAV.