Last checked at 29 Apr 2024 07:00
29 April 2024
Kavango Resources PLC
("Kavango" or "the Company")
£3.08million Accelerated Bookbuild
Kavango Resources plc (LSE:KAV), the Southern Africa-focused metals exploration company, is pleased to announce the Company is proposing to raise £3,085,366 by the issue of 257,113,862 new ordinary shares in the capital of the Company ("New Ordinary Shares") at a price per share of 1.2 pence, via an underwritten accelerated bookbuild (the "Accelerated Bookbuild").
The Accelerated Bookbuild will open at 0800 on Monday 29 April and close at the latest at 1700 on Tuesday 30 April. The result of the Accelerated Bookbuild will be announced as soon as is practicable after the close.
The Accelerated Bookbuild is being underwritten by Purebond Limited, who will subscribe for a minimum of 135,000,000 New Ordinary Shares.
The Company's broker, First Equity Limited, will act as coordinator of the Accelerated Bookbuild.
To participate in the Accelerated Bookbuild, please contact First Equity using the details provided below.
Ben Turney, Chief Executive Officer of Kavango, commented:
"We are extremely grateful to Purebond for their continued strong support of Kavango.
As the prices of gold and copper continue to rise, this is an ideal time to make major discoveries in both metals. Thanks to Purebond's powerful financial backing, Kavango has developed its projects swiftly in Zimbabwe and Botswana. Today's £3.08million accelerated bookbuild will enable us to build on this momentum.
In Zimbabwe we recently announced results of two successful gold exploration holes at our Hillside Project. Highlights included 7.2m @ 9.95g/t at Prospect 2 and 2.53m @ 29.08g/t at Prospect 4. We will use some of the funds raised in the bookbuild to take the diamond drill rig back to Hillside to test the strike, width, and extent of these possible discoveries.
Meanwhile, in Botswana, we are about to embark on a 5,000m diamond drill programme at the Karakubis Copper Project, part of our extensive 7,500km2 mineral rights package in the Kalahari Copper Belt. Having recently completed detailed surveying and mapping, we believe we have identified the right geological setting and structural controls for potential large-scale copper/silver deposits across the Kara Anticline.
It now remains for us to test whether the Kara Anticline contains a copper mineralised system. Physical indicators are encouraging, with the presence of pathfinder minerals galena and sphalerite. We are keen to start this landmark drill campaign and will use some of the funds raised to deploy a second rig to the Karakubis Project. This will halve the time it takes for us to complete the programme.
If any existing Kavango shareholders wish to participate in the accelerated bookbuild, please contact our broker First Equity."
Participating in the Accelerated Bookbuild
Kavango's broker, First Equity, will coordinate the Accelerated Bookbuild.
To participate in the Accelerated Bookbuild please contact Jason Robertson:
Telephone: +44 207 374 2212
Email: jasonrobertson@firstequitylimited.com
Use of funds
Funds from the Accelerated Bookbuild will contribute to the Company's general working capital, fund further exploration and development work and provide finance for acquisitions.
Exploration work is likely to include (but not be limited to):
§ Diamond drilling to test presence of multiple economic gold ore bodies in Hillside/Nara gold belt, Zimbabwe
§ 5,000m diamond drill campaign to prove the Kara Anticline is a copper-mineralising system in the Kalahari Copper Belt, Botswana
§ Completion of Hillside acquisition (announced >>> 23 April 2024)
§ Capital investment into Kavango Mining to increase gold production (announced >>> 08 March 2024)
§ Increasing project footprint in Zimbabwe, through securing additional options on projects
Admission and Total Voting Rights
On completion of the Accelerated Bookbuild, application will be made for the New Ordinary Shares to be admitted to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc ("Admission"). It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00am on or around Thursday 16 May 2024.
Following Admission, the total issued share capital of the Company will consist of 1,562,683,176 Ordinary Shares. Therefore, the total number of voting rights in the Company is 1,562,683,176 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
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
Ben Turney
+46 7697 406 06
First Equity (Broker)
+44 207 374 2212
Jason Robertson