Member Info for slowlyslowly

Gazzle, in fairness, most company's dividend announcements don't come with a strong warning that you need to register your bank details in order to receive the dividend. That is an unusual section to put in the RNS, and that may be what freaked a few people into thinking they have to take some steps. Maybe the bigger surprise is that people don't get what a nominee is, and what they do for you.

Anyway, one more trading day for people to buy this before it goes ex-div

Yes, I am very excited at it.

If the geophysical data is correct (and we've no reason to assume otherwise), the reason they missed before is because the exact target was twice as conductive, but smaller and off to one side. And that's not because they drilled the wrong place but because a second conductor was very close and they hit her centre of the combined area.

That means we're drilling into something that is insanely conductive (better than before), our previous successful DHEM survey means we know where to go (better than before), and we have budget and drill team allocation to drop two holes rather than just the one (better than before).

It looks very like there's something significant down there, and we're very well placed to hit it. Then we can go and see what's at B3 and B4 as well.

That's the kind of story that should breed a load of expectation, and it's only the negative sentiment that's getting in the way of that. But if they hit visible massive sulphide, that negativity will evaporate faster than a Kalahari puddle in the morning sun.

Not long to wait now

Thanks for explaining Purdey. Could you now explain why it would (might?) be Ben Turney who decides how the shares held by Eridge vote at the AGM?

I'm totally lost. I must be missing some history here: what is the connection with Kavango?

So after paying the dividend the company still has cash equivalent to 0.5p per share

Well, at least Jam's fears are put to rest. No need for a fund raise at this level. £16m in the bank, and fully funded to Q4 2024

Guzzle, the RNS simply says we leave the AIM All Share, not that we move to main market or join the FTSE All Share. We're still AIM aren't we?

I may have been wrong before on the date we became a cash shell for the purposes of Rule 15. I still think we became a shell on 6th or 14th March. But if so, for market regulations purposes, why do we only get removed from the AIM All Share now?

This may, after all, be the reason they delayed the dividend, to give maximum time before suspension. Hopefully they'll make the deadlines and timetable clear at some point.

The 6 months starts when they became a cash shell. That's to say: When they disposed of their last trading business. That was 6th March. The fact they received funds 8 days later is irrelevant - from 6th March, the company was not trading, simply a dormant company holding cash. 8 days later the amount of cash increased, but they became a shell on 6th. So they have until 9th September to complete an RTO or become an investing company. Why they've waited until today to declare the dividend, I've no idea. But you'll note that the payment date of 14th June is exactly 3 months from receipt of funds, so for whatever reason they've gone for the longest time their previous public announcements allowed.

The point being that the Purebond funds are not needed for them to announce the projects

I thought Zim was an option for 2 years, where they can do surveying and drilling before deciding whether to exercise the option. If that's the case, we'll hear about it when they've finished checking they're happy on paper, but it won't need any (or much) cash at this point.

Purdey, the takeover rule at 30% is not the highest price anyone paid in the past 12 months, but the highest price paid by the 30% holder in the past 12 months.

As you say, if they hit 30% without a Rule 9 waiver, they'd have to make an offer for the remaining shares. That would go to a shareholder vote - at which they would be unable to vote. I can't see the holders of the remaining 70% of shares voting 75% in favour of selling to Purebond at 1.8p

Https://twitter.com/Ben_Turney/status/1658420904026595334

I should add that the bit you just quoted seems to come from a quotation from Sean Wade, reported on a Share - Talk article on Malopo Farms, dated 27 April this year, rather than from Keith. At least, I can't find it from Keith

@JohnM

Back in March I posted this message on the KAV board on this site. I'll paste it here to refresh people's memories. I mentioned saline ground water, but Serpentinite is on the chart, and is also in the 10s:

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A year or so back, the company published a diagram produced by Jeremy Brett. It had a horizontal scale showing different Siemens readings. Underneath are coloured bars, each indicating a different type of resource. The bars are positioned so they stretch across the range of readings you'd get if you have that underground.

On the left are the lowest conductors. Granite. Sand. Permafrost. Typically at 0.00001 to 0.001 Siemens.

On the right are the highest conductors. Super conductive sulphides. Typically 50,000 to 100,000 Siemens.

Salt water is in the 10s range.

Graphite is in the 1s-10s range.

The 100s is semi massive sulphides, magnetite and serpentised ultramafics.

1000-10,000 is massive sulphides.

So at 28k we are above that, but not into the super conducting sulphide range.

https://twitter.com/KavangoRes/status/1546806667932844038?t=YrYD6RQyVTNGUo_bUo23DA&s=19

Keith last posted on the Kavango board on the 15th March:

"Apologies, guys & girls. I do continue to post on the PRD & HE1 boards - these are O & G companies, a sector in which I do not have a current professional involvement. I am unable to comment on KAV at the moment due to issues concerning potential conflict of interest."

then

"Just to be clear - I am not working in any way for KAV, nor any company that is interested in taking them over, JV-ing, etc. , nor any company that would have any effect on KAV's share price. Please do not engage in idle speculation over what is an absolutely standard industry practice. Over & out."

We'd all like his account of our situation, but we sadly we aren't going to get it.

Good to see a contract signed with Mindea to drill B1, B3 and B4, with the plan being that drilling at B1 will start in the next 3 weeks. My observation is that Mindea have been a solid partner before, so they're a good choice. Makes sense to start at B1, as that's the one with an insanely high number of Siemens. Glad to see they've used a rig that is capable of depths exceeding the target depth, in case the core suggests that it's worth keeping going deeper - best not to close off that option unnecessarily. Now we just wait and see what's down there

Legalwolf, The conditions are in the RNS today

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Completion of the Stage 1 Subscription is subject to (i) the Company having the necessary authorities to issue the Stage 1 Subscription Shares, including disapplication of pre-emption rights and (ii) admission of the Stage 1 Subscription Shares to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (the "Stage 1 Conditions"). The Company intends to put resolutions to shareholders for the relevant share authorities in respect of the Stage 1 Subscription Shares at its 2023 annual general meeting, details of which will be announced soon.

Completion of the Stage 2 Subscription is subject to (i) approval by the Financial Conduct Authority of a prospectus; (ii) approval by independent shareholders of a waiver in accordance with Rule 9 of the Takeover Code; (iii) the Company having the necessary authorities to issue the Stage 2 Subscription Shares, including disapplication of pre-emption rights and (iv) admission of the Stage 2 Subscription Shares to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (the "Stage 2 Conditions").

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There is nothing in today's announcement that ties the timing of the vote for stage 2 to any drilling campaign. Shareholders will get to vote for the resolutions required for stage 2 at an extraordinary general meeting, which will only be called once the FCA has approved the prospectus required.

Those wanting a mechanism to hold Ben to account for how he runs the company - someone owning 46% of the company may be what you're looking for.

For those not up to speed, Esa is a 20.6 square kilometre block, made up of 86 individual claims.

It lies just 10km from Barrick's Hemlo mine, to the north east. That mine is a 23m oz resource. Ouch.

Here's the background: When they took the block, known geology suggested a possible east-west sheer through the middle of the block, with a possible sub-parallel one to the south within the area too. The little historical work that had been done suggested a similar mineralisation to that at Hemlo

Last year two things happened: 1. A previous claim holder supplied First Class with their raw VTEM data free of charge. That saved FCM about £100k. 2. They did a soil sampling campaign, collecting 150 samples at the inferred shear.

All of this has been sent to a specialist firm (Paterson Grant and Watson) to interpret. They interpreted the VTEM data in November last year, and as a result the ground team grabbed some extra soils in the last few weeks before everything froze solid, staying in the area long after most exploration field teams have packed up for the winter.

What's now happened is that the soil samples are back, mapped against the previous geophysics and it looks like PGW may further have corroborated how the soils fit onto things. They found a 4km zone that corresponds to the suspected sheer (not known to be in an arc shape - I love the world arcuate). Multiple samples contained gold in the range 10-95 ppb which is considered good for systematic soil sampling for gold. They also found Molybednum, ****nic and Antimony - which are metals that often occur near gold deposits and so suggest you're on the right path for the gold.

Two other things: 1. There are a couple of other structures showing on the VTEM - one aligned N-S, the other N-NE. The highest figures appear to be where these intersect the sheer. 2. They found a boulder that resembles the rocks found at the Barrick Hemlo mine with 0.7ppm gold in - very good for a grab sample.

Remember: This is all being investigated because of the proximity to Hemlo, and the similar geophyics and geology.

These results would be astounding anywhere someone was looking for gold, and would warrant further ground work and eventually drilling. But the thing here is that it backs up the theory that something very similar is going on at Esa to what caused the deposit at the Hemlo mine. That's a very exciting theory to be firming up. They could be onto something big.