Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
12 June 2020
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Kalahari Suture Zone Botswana, 3D Modelling Update
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the appointment of a specialist geological modelling firm, Mira Geoscience Ltd., to advance target selection for future drilling in the Kalahari Suture Zone ( "KSZ").
Highlights
v Mira Geoscience is a world leader in advanced geological and geophysical 3D modelling, including the interpretation of mineral systems and drill target identification for the mining and mineral exploration industries.
v Kavango has now supplied Mira Geoscience with a comprehensive set of all the historical data pertaining to the northern section of the KSZ, (3,238km(2) ) as well as the data collected from its own exploration activities.
v The data supports Kavango's assertion that the KSZ has the potential to host multiple "Norilsk style" Copper-Nickel-PGM deposits. This assertion is supported by the recent report by Prof. David Holwell which can be found here:
- https://www.kavangoresources.com/media/attachments/2020/04/29/mineral-systems-review-of-the-ksz-botswana.pdf
v The completed Model will map the size, location and orientation of gabbroic sills and dykes (conduits) across the KSZ in relation to their sedimentary host rocks (Karoo) and the overlying Kalahari cover.
v Mira Geoscience's 3D Model is designed to identify potential subsurface trap zones that occur in association with the conduits at depths of up to 300m from surface.
v Such trap zones represent areas where the (heavy) metal sulphides may have accumulated during the ascent of gabbroic magma towards the surface and therefore constitute targets for further investigation.
v Follow up would involve high powered, low frequency ground EM surveys to identify mineralisation prior to drilling.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
"Over the last six months, Kavango has compiled a great deal of historical and current information from drill-hole logs and geophysical surveys to produce a comprehensive data-base. This will assist Mira Geoscience in the development of a computerised 3D Model of the northern section of the KSZ.
The Model will be designed to identify trap zones within which metal sulphide accumulations may have developed. This modelling is "state of the art" exploration and we are optimistic that it will lead to a mineral discovery in the near future."
Further information in respect of the Company and its business interests is provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Market Musings with Fairbairn & Russell
Podcast No.35 with Geologist Charlie Stephenson from SI Capital
Jun 5, 6:35 AM
We welcome Charlie from SI Capital who's job it is to make sure SI are taking only top quality companies onto their books. Charlie tells us how he became a geologist and points out some key geological facts that every investor in exploration should understand.
We talk specifically about some of SI's clients at these times: Iron Ridge @ 36:00, Greatland Gold @ 39:45, Thor Mining @ 42:00, Cobra @ 42:55, Kavango @ 44:34, Panther Metals @ 48:40, ECR Minerals & Power Metal Resources @ 51:47.
https://audioboom.com/posts/7600136-podcast-no-35-with-geologist-charlie-stephenson-from-si-capital?utm_campaign=detailpage&utm_content=retweet&utm_medium=social&utm_source=twitter
3 June 2020
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Kalahari Copper Belt Prospecting Licences Granted
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce it has been granted two Prospecting Licences ("PLs") in the Botswana section of the highly prospective Kalahari Copper Belt (the "KCB").
Kavango's two new PLs are located directly to the southwest of Sandfire Resource's T3 and A4 Dome copper-silver discoveries.
Highlights
v Two new Prospecting Licences in the KCB - PL036/2020 and PL037/2020
- 100% owned
- Contiguous licence areas, covering 1,294.2km(2) , immediately south of the town of Ghanzi
- Initial 3 year licence term, which can be extended to a maximum of 7 years.
- Combined Year 1 work commitment of GBP75,000
- Increases the Company's exposure to the KCB following the JV Agreement with LVR GeoExplorers Ltd ("LVR") on two strategically located licences announced in February 2020
v The KCB is a key emerging exploration province for major sedimentary copper-silver deposits
v Acquisition of further licences underway
v Easing of lockdown restrictions to commence in Botswana from start of June
- Company to reinitiate field exploration as soon as possible
v Corporate presentation updated on website
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
"We are delighted to have secured these two new prospecting licences. It is thanks to our in-country presence and knowledge that Kavango has been able to add to its portfolio of strategic exploration assets in the highly prospective Kalahari Copper Belt.
Given the positioning of these two new licences, in such close proximity to major copper-silver discoveries, we are eager to commence exploration here as lockdown restrictions are loosened in Botswana."
About the Kalahari Copper Belt ("KCB")
The KCB stretches 1,000km from northern Botswana to central Namibia and is prospective for copper-silver deposits. The KCB is relatively underexplored and is a key emerging trend globally, located in stable and pro-mining jurisdictions.
In recent years the KCB has attracted substantial exploration interest. This has resulted in significant copper-silver discoveries including:
- Cupric Canyon's Zone 5 deposit ("Zone 5"), which hosts a mineral resource of 91.7 million tonnes ("Mt") grading at 2.1% copper and 14 grams a tonne ("g/t") of silver.
- MOD Resources' and Metal Tiger's (LSE:MTR) commercial discovery at T3, which was subsequently acquired by Sandfire Resources (ASX:SFR) ("Sandfire") in October 2019.
The T3 Project currently hosts a mineral resource of 60.2Mt grading at 1.0% copper and 14.0g/t silver and an Ore Reserve of 342,700 tonnes of contained copper and 14.6 million ounces ("Moz") of silver.
- Sandfire's A4 Dome satellite discovery, which is located directly to the w
2019, beginning with three target holes across 1,000m.
The point of the campaign was to identify high-potential targets in what are known as underground traps. It is these traps that so confused the Canadian scientists back in the 1970s.
Drilling confirmed the presence of an extensive magma plumbing system. This is a feature of established nickel-copper-PGM deposits in some of the largest and most profitable mines in the world, including Norilsk in Siberia, Canada’s Raglan and Voisey’s Bay, and Jinchuan in China.
This magma plumbing system had filtered molten magma, carrying dense metal sulphide liquid through a series of vertical and horizontal fissures. Because metallic elements are heavier than the surrounding rock, they accumulated and solidified in underground traps further below the surface.
Kavango believes — backed by the latest science — that these underground traps contain intensely concentrated metal deposits just waiting to be exploited.
In the next stage of its exploration Kavango will drill and test trap zones in the plumbing systems that lie within 300m of the surface. And initial drill samples are being sent to the University of Leicester for mineralogical and petrographic testing.
Then the main task is to combine Kavango’s data from extensive analysis, which includes airborne electromagnetic surveys and soil geochemistry, together with gravitational surveys in the public domain.
And 3D computer modelled reports to confirm their theory will be prepared across Q2 and Q3 2020. No wonder that chief executive Michael Johson says Kavango are looking forward to an “exciting programme” of exploration in 2020.
Author: Mark Sheridan
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Published in: Blog, on: 28 May 2020
https://miningmaven.com/blog/1053-kavango-hits-on-major-geological-formation-with-world-class-nickel-copper-pgm-potential-kav
Kavango hits on major geological formation with world-class nickel-copper-PGM potential (KAV)
Main market-listed Kavango Resources (LSE:KAV) has a secret hiding under trillions of tons of rock in Botswana.
And somethiNg rather interesting cropped up in its full year results to 31 December 2019, published on 26 May 2020.
The company has a huge license area totalling 5,573km2 across the Kalahari Suture Zone (KSZ) in the south west of the African nation.
CEO Michael Foster noted how the region continues to show considerable potential for the discovery of world-class base metals deposits.
“Kavango has gathered more exploration data on the KSZ than any other company. Over the coming months we expect to make significant progress in validating our view that the underexplored KSZ is host to world-class copper-nickel-PCM deposits.”
“In addition, we are nearing completion of our first farm-out by selling a 51% interest in the Ditau project,” he said.
Power up
Ditau covers 1,386km2. At its centre are ten vast geological formations known as ring structures, many kilometres across. Ring structures are widely associated with the presence of volcanic carbonatites, the primary source of rare earth elements (REE).
On 15 April 2020 shares in partner firm Power Metals (LSE:POW) rocketed when it announced it had agreed to buy the stake in Ditau to target “highly prospective” REE deposits. Rare earth elements are critical for manufacturing numerous high-tech applications, including electric vehicle motors and batteries.
Kavango has also added to its portfolio in the Kalahari Copper Belt, where two new mines are being developed.
But excitement is growing here for another reason.
Kavango Chairman DJ Wright writes: “Our primary goal in the coming months is to deepen our understanding of the KSZ project and identify future drill targets.”
This deeper understanding is what I want to focus on today.
Underground: watch this space
50 years ago, an important Canadian nickel-copper producer called Falconbridge was working in the Kalahari Suture Zone. Its scientists were convinced that south west Botswana held the key to vast deposits of undiscovered diamonds that could make fortunes and transform world markets.
Excitedly drilling target holes, the scientists were disappointed to find absolutely barren rock. It didn’t seem to make sense. Running out of money, the Canadian company was forced to abandon the site and leave perplexed.
Using much more precise instruments, a new hypothesis has been formed. And it’s good news for Kavango’s shareholders.
Advances in geological mapping since the 1970s, including 3D computer modelling, have revealed that, far from being barren, in fact, the opposite is true.
DJ Wright notes: “There is now a large body of evidence suggesting that the accumulation of nickel and copper-bearing metal sulphides occurred within the high level gabbroic intrusions of the KSZ.”
What really happened
Kavango began drilling at the KSZ in October
13 May 2020
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Exploration plan - Kalahari Suture Zone, Botswana
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the next stages of exploration in the Kalahari Suture Zone ("KSZ").
Highlights
v Exploration objectives:
- To discover world class Copper-Nickel-Platinum Group Metal ("PGM") deposit/s in the KSZ
- To identify high-potential drill targets in "underground traps"
- To increase the chances of future drilling success
v Exploration plan guided by Dr. David Holwell's Mineral Systems Review of the KSZ (announced 29 April 2020)
v Ongoing data analysis work in Q2 & Q3, including:
- Completion of 3D Underground Geological Model of northern part of the KSZ
- Additional data gathering from third party sources
v Field work and sample collection to commence once lockdown in Botswana is over, including:
- A whole rock geochemistry report on gabbro samples
- "Thin section" drill core samples to be sent to the University of Leicester's laboratory for mineralogical and petrographic testing
- Ground-based, high-powered electromagnetic loop surveys to confirm final drill targets
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
"Over the coming months we expect to make significant progress in validating our view that the underexplored KSZ is host to world class Copper-Nickel-PGM deposits.
Kavango has gathered more exploration data on the KSZ than any other company.
All our efforts to date have consistently confirmed the KSZ's significant potential. Our goal now is to deepen our understanding of the region's geology and to confirm our next targets for field exploration.
The analyses we are now completing will guide preparations for our next extensive drill campaign here and maximise our chances of success.
I look forward to providing further updates on the results of our work, including a future drilling timetable once complete."
Background
In October 2019 Kavango began its first exploratory drill campaign in the KSZ. It confirmed the presence of a number of important geological requirements for the potential of the KSZ to host one or more, large Copper-Nickel-PGM deposits.
The original objective of the campaign was to drill 1,000m over 3 holes.
However, by completing the first 3 holes under budget, Kavango was able to drill a further 3 holes.
The drilling confirmed the presence of an extensive magma plumbing system. This plumbing system is made up of vertical "dykes" and horizontal "sills", which acted as "conduits" or "feeders" transporting molten magma from deeply buried magma chambers to surface "vents". This occurred 180 million years ago during the Karoo Age.
Over time, the molten magma cooled to form what are known as "gabbroic intrusions".
Kavango believes gabbroic intrusions in the KSZ could play host
29 April 2020
KAVANGO RESOURCES PLC
MINERAL SYSTEMS REVIEW OF THE KSZ, BOTSWANA
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, wishes to announce the publication of a new independent technical review on the exploration potential of the Company’s Kalahari Suture Zone (“KSZ”) Project.
The review has been completed by Dr David Holwell, of D&D Geoconsultants using a Mineral Systems Approach (“MSA”)(the “Review”).
Dr Holwell (BSc MSc MCSM PhD) is a leading authority on the development of Copper-Nickel-Platinum Group Metals (“PGM”) sulphide deposits associated with magmatic systems. Kavango is searching for “Norilsk-Style” deposits in the KSZ.
Highlights:
? Initial review of Kavango’s KSZ Project completed by Dr Holwell
? The MSA is a more predictive method for finding large scale ore deposits.
? The full Review is available to view and download on the Kavango website.
? The Review confirms Kavango’s assessment of the KSZ Project’s significant economic potential.
? Follow up test work to be completed once travel restrictions lifted.
Review highlights
? The Review confirms the presence of 10 key geological features present in world-class magmatic sulphide Copper-Nickel-PGM deposits at Norilsk (Siberia), Voisey's Bay (Canada), Raglan (Canada), Jinchuan (China), the Thomson Nickel Belt (Canada) and other similar magmatic sulphide deposits worldwide.
? The Review recommends a number of exploration steps for the Company to take in establish whether additional geological features are present in the KSZ, which are typically found in world-class Copper-Nickel-PGM deposits.
? Exploration of the KSZ to include combination of desktop and drill core analysis and field exploration.
? The Review concludes that the KSZ “is a prime setting for a magmatic Nickel-Copper-PGM deposit.”
? Proposed collaboration with the University of Leicester, UK to examine economic potential of the KSZ
? Applied research project, under Dr Holwell’s supervision.
? The research work will include petrology, mineralogy, electron microprobe work, whole rock geochemistry and thin section work on exploration data gathered by Kavango.
? Kavango to release KSZ work programme plan in coming weeks.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The Review of the Kalahari Suture Zone Project by Dr Holwell and the work carried out to date by the Company represents confirmation that Kavango is “on track” to make a mineral discovery in the near future. The huge value of deposits such as the Copper-Nickel-PGM rich ores in the Norilsk-Talnakh camp – of the order of hundreds of billions of dollars within a single ore shoot – provides a powerful incentive to develop an understanding of the geology of the KSZ and identify effective detection techniques.We look forward to working with Dr Holwell on this exciting exploration project.”
Revi
AUDIO INTERVIEWS
ValueTheMarkets Podcast 036 – with Mike Moles of Kavango Resources (KAV)
24 APR 2020 | Stuart Langelaan
Today’s guest on the ValuetheMarkets podcast is Mike Moles, director and co-founder of Kavango Resources (LSE:KAV). The company, which is focused on three projects in Botswana that are prospective for copper, nickel and platinum group elements metals, released an announcement on Thursday detailing its recent progress.
In the interview, Moles first discusses Kavango’s licences covering a highly prospective geological trend called the Kalahari Suture Zone. Here, he says a thorough report on the project’s economic potential by Dr David Holwell, a leading authority on magmatic sulphide deposits, is likely to be released next week.
Although Covid-19 has affected Kavango’s operations on the ground, Moles also says that a considerable amount of desktop work continues. Specifically, the firm is crunching data from recent and historic drilling results, ground geophysics and airborne surveys.
Elsewhere, Moles discusses Kavango’s Kalahari Copper Belt Joint Venture, where it is looking to increase the size of its land position, and its Ditau project.
Kavango’s AIM peer Power Metal Resources (LSE:POW) is currently undergoing due diligence on Ditau in anticipation of acquiring a 51% working interest in the project.
https://www.valuethemarkets.com/2020/04/24/valuethemarkets-podcast-036-with-mike-moles-of-kavango-resources-kav/
MiningMaven on: 23 April 2020
Kavango Resources rockets on encouraging portfolio progress (KAV)
Kavango Resources (LSE:KAV) rocketed by 43% to 0.9p a share on Thursday following the release of a company-wide update on its efforts to discover world-class metal deposits in Botswana.
One highlight was the news that Dr David Holwell, a leading authority on magmatic sulphide deposits, has reviewed the geological and economic potential of the firm's licence in the Kalahari Suture Zone ("KSZ"). Although Kavango expects to release the findings of the report in the coming weeks, the firm's chief executive gave an early indication of their high quality when he said:
"We are particularly encouraged by the initial results we've seen from Dr Holwell's report and look forward to providing a comprehensive update on this soon."
Kavango's ten prospecting licences cover a significant portion of the KSZ, which is a geological feature that shares a similar setting to the magmatic sulphide deposits at Norilsk in Siberia. These alone account for 90% of Russia's nickel reserves, 55% of its copper, and virtually all of its platinum group metals. Following a successful drill programme over the licences last year, Kavango is constructing a computerised 3D underground map of the northern part of the KSZ project area.
The company added that it is now fully-funded for the next phase of exploration work at the KSZ following financing earlier this month that saw it raise £358,500.
Elsewhere in Thursday's release, Kavango said it was reviewing further prospecting licences within the wider Kalahari Copper Belt to be held with the joint venture it set up with LVR GeoExplorers earlier this year. Meanwhile, the firm is also assessing the potential of a number of other prospecting licences in which it would take a 100% direct interest.
Finally, Kavango provided an update on the news earlier this month that it conditionally sold a 51% position in its prospective Ditau project in Botswana to its AIM peer Power Metal Resources (LSE:POW) for £150,000.
On Thursday, Kavango said Power Metal's due diligence work is ongoing and that it is planning orientation work on three "carbonatites" discovered 25 kilometres to the north of Ditau in the 1970s.
Carbonatites are a rare type of igneous rock almost exclusively formed from continental rift-related tectonic settings. They develop from volcanic activity that failed to erupt meaningfully at the earth's surface and typically form "ring structures" due to their lithological complexity and their tendency to "dome" the surrounding geology. Alongside rare earth elements, carbonatites can also often contain economic or anomalous concentrations of other highly-sought-after metals like phosphates, magnetite, strontium, niobium, and even copper.
De Beers has given Kavango access to the site of the three carbonatites, and the firm is now planning non-invasive geophysical work – subject to the adoption of an environmental plan and Power
RNS @ KAV
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“Following completion of our recent strategic financing, we are extremely pleased to report on the progress we have made over recent months. We have kept dilution to a minimum, as we now enter the next crucial phase of exploration across our portfolio of projects.
Our goal is to discover world-class metal deposits in Botswana. Thanks to the evidence we have gathered in the field from surveys and drilling we are well positioned to build sophisticated geological models to hone future high-priority target selection.
We are particularly encouraged by the initial results we’ve seen from Dr Holwell’s report and look forward to providing a comprehensive update on this soon.”
A glossary of geological terms is provided at the end of this announcement.
Kalahari Suture Zone Further Exploration
On 2 December 2019 Kavango announced that its most recent drilling programme in the KSZ had identified a magma plumbing system within the Karoo sediments. This was a significant step forward for the Company in its search for “Norilsk-Style” Copper-Nickel- PGM deposits.
The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia’s nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango’s licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk. Magma plumbing systems are a key feature of these deposits.
Typically, magma plumbing systems are composed of stacked horizontal sills connected to each other via vertical dykes.
A continuous flow of magma (containing “free” sulphur) through a magma plumbing system may have allowed the accumulation of metal sulphides in certain trap sites within the sills. This is because metal sulphides are heavy and tend to sink to the bottom of magma.
Over time, accumulations of metal sulphide could have led to the formation of economic deposits of Copper-Nickel-PGMs. The data from the drilling campaign is now being incorporated into a computerized 3D Underground Model (an underground map) by the Company and its consultants. The 3D Underground Model also incorporates data from ground geophysics and airborne surveys, as well as third party drilling data from other mineral exploration programs and water boreholes.
The construction of the 3D Underground Model of those areas within the northern section of the KSZ that show the development of a high-level plumbing system will allow Kavango to identify “trap zones” within the intrusives (sills) that have the potential to host metal sulphide mineralization. Those zones will be tested with ground based EM surveying using high powered transmitters that are designed to penetrate conductive overburden and saline ground water. A contractor for this work has already been identified.
Kavango is fully funded for this next phase of development at the KSZ.
KSZ e
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@PowerMetRes CEO Paul Johnson talks @proactive_UK through the thinking behind their latest acquisition - a 51% interest in the #Ditau project in #Botswana for £150,000 from @KavangoRes
https://www.youtube.com/watch?v=kB9eR1NPy4k
Skiboy1016 Apr '20 - 14:33 - 1386 of 1386 Edit
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*VIDEO*
#KAV @KavangoRes
#Kavango Resources Plc's Michael Foster outlines new Botswana JV with Power Metal Resources
https://www.youtube.com/watch?v=r56u-kbncKI
15 April 2020
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Issue of loan notes to directors and managers increases total financing to £468,487
Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard List segment of the main market of the London Stock Exchange and targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce it has reached agreement with certain directors and managers for the settlement of arrears of remuneration by the issue of convertible unsecured loan notes.
In order to preserve the Company's cash resources, directors and senior managers have been deferring their remuneration for some time and a balance of £91,855 was due in this respect.
Earlier today the Company announced that it has raised £358,500 of working capital through, among other things, a placing and subscription of new shares at a placing price of 0.8p per new ordinary share (the "Placing), the issue of £38,000 zero coupon convertible loan notes 2021 and the issue of £102,500 of a series of 10% convertible unsecured loan notes 2021 (the latter being "Notes"). The Company has now agreed with directors and senior managers to issue a further £109,987 nominal of the Notes for cash of £18,132 and in payment of the balance of arrears of remuneration, as follows:
The Notes are repayable, if not previously converted, on 31 March 2021 and bear a coupon at the rate of 10% per annum.
Conversion of the Notes, including accrued interest, is at the same conversion price as the Placing price in the recent financing, namely 0.8p per ordinary share, is at the instance of the Company only, and is conditional upon the Company issuing a new prospectus, which will enable the admission to listing of the new shares to be issued on conversion. If the Company does not issue a prospectus and obtain approval for the admission of these new shares to listing by 28 February 2021, and then exercise its conversion right, then the CLN will be repayable in full on 31 March 2021 together with the accrued interest. If fully converted, the £109,987 nominal of Notes to be issued to directors and managers will result in the issue of a further 13,748,375 new ordinary shares. The directors and managers will each receive one warrant for each 0.8p nominal of the Notes taken up, exercisable at 1p and with a 3-year expiry from the date of Admission of the Placing shares (the "A" Warrants).
"A" Warrant holders will receive a full replacement warrant ("B" Warrants), exercisable at 2.5p, for every "A" Warrant they exercise within 12 months of the Admission of the Placing shares. "B" Warrants will have a 3-year expiry from the date of Admission of the Placing shares.
The "A" Warrants are, and the "B" Warrants will be, conditional upon the Company issuing, prior to 28 February 2021, a new prospectus, giving permission for the admission to listing of the new shares to be issued on exercise. They will also be conditi
15 April 2020
Power Metal Resources plc ("POW" or the "Company")
Conditional Acquisition - Botswana
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to announce the conditional acquisition of a 51% interest in the highly prospective Ditau Project, located in Botswana (the "Acquisition").
Highlights
§ Subject to satisfactory completion of due diligence POW is to acquire 51% of the Ditau Project from Kavango Resources plc, ("Kavango" LON:KAV) for £150,000 payable through the issue of 35,714,286 new ordinary shares of 0.1 pence each ("POW Shares") in POW at an issue price of 0.42p per POW Share;
§ The Acquisition is subject to due diligence for which the parties have agreed due diligence period of 30-days which will commence from removal of COVID-19 related international travel and work restrictions, or 1 September 2020, whichever is earlier;
§ The highly prospective Ditau Project is targeting the discovery of commercial deposits of Rare Earth Elements ("REE");
§ Ten geophysical "ring structures" identified at Ditau, including one 7km by 5km magnetic anomaly, are potentially related to carbonatite magmatism which is the primary source of niobium and REEs;
§ On Completion of the Acquisition POW will become the operator of the Ditau Project and will confirm a new project work programme;
§ In addition, POW has invested £38,000 in Kavango via a convertible loan note (the "CLN") with a term to 31 March 2021;
§ The CLN is convertible into new ordinary shares of 0.1 pence each in Kavango ("Kavango Shares") at a price of 0.80p per new Kavango Share ("KAV Conversion Shares");
Each Kavango Conversion Share comes with an attached warrant to subscribe for an additional new Kavango Share at a price of 1.0p each, with a 3 year life to expiry, and a further early conversion warrant at 2.50p, as outlined below.
Paul Johnson, Chief Executive Officer, Power Metal Resources commented: "POW is building a portfolio of potentially exciting opportunities, with the conditional acquisition of the Ditau Project offering a great deal of promise.
The POW team has a strong connection with research leaders in the area of carbonatite geology, and we believe that know-how, when applied to the extensive information gathered by Kavango to date, will make a significant difference.
Not only can we help augment the forward direction for the Ditau Project, but also open up new commercial avenues for a more rapid project advancement."
Note - Paul Johnson, Chief Executive Officer of Power Metal Resources plc holds 5,091,544 shares in Kavango Resources plc ("Kavango") representing 2.71% of the issued share capital of Kavango following completion of this transaction and has therefore abstained from board decision making in respect of this Conditional Acquisition.
DITAU PROJECT BACKGROUND
Ditau comprises of two prospecting licences, which cover an area of 1,386km2. S
15 April 2020
KAVANGO RESOURCES PLC
(“Kavango” or “the Company”)
Financing and 51% sale of Ditau
Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard List segment of the main market of the London Stock Exchange and targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce it has raised gross proceeds of £358,500 in a placing and subscription (the “Financing”).
The Financing comprises of a £218,000 placing and subscription, the issue of £38,000 zero coupon convertible loan notes 2021 (the “First Loan Notes”) and the issue of £102,500 of a series of 10% convertible loan notes 2021 (the “Second Loan Notes”).
In addition, the Company is pleased to announce the conditional sale of a 51% interest in its prospective Ditau Project (“Ditau”) to Power Metal Resources PLC (LSE: POW) (“Power Metal”) for £150,000, subject to contract and a due diligence process (the “Transaction”).
Funds raised will be used for general working capital, to carry out work across the Company’s three project areas in the Kalahari Suture Zone (“KSZ”), the Kalahari Copper Belt (“KCB”) and Ditau.
Highlights:
• £358,500 gross funds raised in the Financing as follows:
o £218,000 placing at 0.8p per share
o £38,000 subscription by Power Metal for the First Loan Note
o £102,500 for the Second Loan Note
• Sale of 51% interest in the Ditau Project to Power Metal terms thus:
o £150,000 payment to Kavango to be paid through the issue of 35,714,286 new ordinary shares in Power Metal
o Power Metal to become operator of Ditau
o Transaction expected to close as soon as practicable subject to contract and Power Metal’s due diligence
o Accelerated work programme planned
———————-
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“We are pleased to have secured the Financing in extremely difficult market conditions.
Following successful drilling in 2019, when we made significant progress towards confirming our geological model in the Kalahari Suture Zone and identified prospective carbonatite targets at Ditau, we are now ready to enter the next phase of exploration.
We continue to maintain a tight control over all costs and plan to deploy the new funds for general corporate purposes and to accelerate our work programs.
We look forward to providing further updates on this in the near term and to welcoming Power Metal as our new partner at Ditau, once contracts have been signed and due diligence has been completed.”
10:37 Fri 28 Feb 2020
Kavango Resources: New copper project 'a highly encouraging move'
Mining Capital's Alastair Ford discusses a new addition to the Kavango Resources PLC (LON:KAV) portfolio: a joint venture on two copper exploration licences just a few kilometres away from the ground worked up by MOD, Metal Tiger (LON:MTR) and Sandfire (ASX:SFR).
''To see Kavango developing a new copper project I think that's going to create a certain amount of interest in a market that, on occasion, has wondered what the potential of the Kalahari Suture Zone is ... and the answer to that is it could be extremely large''.
https://youtu.be/HX_C5t4Uo3s
In a sense, he says, it’s a box ticking exercise. “You know what criteria you need for a project like Voisey’s Bay or Norilsk, you need to tock the right boxes, and so far we have. If we don’t find a massive sulphide on KSZ, then somebody else will in the future. But provided we can keep funding, we think we will.”
More magnetic survey work is planned, in particular the deployment of a bigger transmitter designed to produce a bigger current and allow the company to see past all the salted groundwater that’s previously interfered with the interpretation of data. And after that there should be more drilling.
At the same time, work on the copper ground will be beginning to gather momentum, so all told, it looks like there should be a healthy flow of news over the coming year. By the end of that process the company could look very different indeed.
https://www.proactiveinvestors.co.uk/companies/news/913842/kavangos-new-foray-into-the-kalahari-copper-belt-wont-distract-it-from-upside-at-ksz-913842.html
Kavango’s new foray into the Kalahari copper belt won’t distract it from upside at KSZ
There is huge upside on both of Kavango's main exploration projects
Kavango Resources PLC -
It’s an exciting addition to the Kavango Resources PLC (LON:KAV) portfolio: a joint venture on two copper exploration licences just a few kilometres away from the ground famously worked up by MOD, Metal Tiger (LON:MTR) and Sandfire (ASX:SFR).
The formal joint venture was signed in mid-February following an initial memorandum of understanding that was agreed in September of 2019. But it’s not likely to end there.
“We’re in the process of putting together quite a substantial land package in that area,” says Kavango’s chief executive Mike Foster.
“We have plans to extend our ground holding further.”
Partly that’s because of the huge prospectivity of the areas Kavango is targeting, but it’s also because of the positive reception the move has got in the market.
After all, investors are only too cognizant of the turn Metal Tiger was able to make on its investment in the nearby T3 project, which was eventually taken wholly-in house by MOD before MOD in turn was acquired by Sandfire.
The area is, says Foster, “one of the world’s most promising under-explored copper provinces
So, this is familiar territory for investors, and in the weeks after the MoU was first signed Kavango’s shares almost doubled, although they have since fallen back.
An exploration programme, which will get underway, should provide further interesting newsflow and may yet stimulate the market further.
In the meantime though, Foster, and non-executive director Mike Moles, are both keen to emphasise that the company’s original project – the one it was listed on – remains key.
“The new copper ground doesn’t necessarily take any of the pizazz away from the Kalahari Suture Zone,” says Foster.
Moles agrees.
“We don’t want people to think we’ve moved onto another project,” he says. “I think the motivation is to give investors a fall-back position. The Kalahari Suture Zone has high risk, and nobody else has got any results from there.”
But the thing about the KSZ is that allowing that it’s high risk, the potential reward is equally high. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the biggest polymetallic projects anywhere in the world.
“Most of the other big bodies of gabbro in similar situations as KSZ do have big deposits of massive sulphides in them,” he says.
“Indeed, there could be a large number of massive sulphides.”
The trick is to find them. To that end, Kavango has already undertaken an airborne geophysical survey which has penetrated down to depths of 400 metres, ground electromagnetics, and it has done some drilling.
“We are able to map,” says Moles. “We’re building up a picture.”
In a sense, he says, it’s a box ticking exercise. “You know what criteria you need for a project like Voisey’s Bay or Norilsk, you ne