Last checked at 17 Jul 2020 07:00
PRESS RELEASE
17 July 2020
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Conversion of Power Metals Convertible Loan Note
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that Power Metals Plc (LSE:POW) ("Power Metals") has exercised its right to convert its entire £38,000 convertible loan ("CLN") in the Company into shares.
Further to the announcement on 15 April 2020, Kavango issued a £38,000 CLN to Power Metals (the "POW CLN"), as part of the £468,487 financing (the "Financing") and in conjunction with Power Metals' conditional acquisition of a 51% stake in the Company's Ditau exploration project in Botswana.
Under the terms of the Financing, Power Metals could convert the POW CLN into 4,750,000 shares in Kavango (the "Conversion Shares"), on issue of a written conversion notice (the "Conversion Notice"). Kavango also agreed that on conversion of the POW CLN it would issue 4,750,000 warrants in the Company to Power Metals, with an exercise price of 1p per share and a 3-year exercise period from 21 April 2020 (the "POW Warrants").
Following Power Metals' exercise of its conversion rights, the Company has now issued the Conversion Shares and POW Warrants to Power Metals.
Ditau Due Diligence
Kavango continues to work with Power Metals and its technical team in relation to the conditional acquisition of a 51% ownership interest in the Ditau Project.
Further updates will be provided in due course.
Application for admission
The Conversion Shares will rank pari passu in all respects with the existing Ordinary Shares. Application will be made for the 4,750,000 Conversion Shares to be admitted to trading on the Standard List segment of the main market of the London Stock Exchange ("Admission"). It is expected that Admission will become effective and that dealings in the Conversion Shares will commence at 8.00am on, or about, 31 July2020.
Total Voting Rights
Following the issue of the Conversion Shares, the total issued share capital of the Company will consist of 192,955,709 Ordinary Shares. Therefore, the total number of voting rights in the Company is 192,955,709 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.
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
Michael Foster
mfoster@kavangoresources.com
SI Capital Limited (Broker)
+44 1483 413500
Nick Emerson
Note to Editors:
Economic Potential of Carbonatites
The Ditau Project contains 10 carbonatites, otherwise known as 'ring structures'.
Until recently carbonatites were regarded as unusual and academically interesting geological bodies but significant interest was only generated once the demand for REEs was established (in the last few years). Hitherto many carbonatites were mined for their phosphate content (fertilizer), or for economic deposits of Niobium, Strontium, Uranium, Thorium, Magnetite, Barium and Vermiculite. One of the world's most productive carbonatites, Palabora, has been in production continuously since 1953 and is South Africa's principal source of copper. About one out of nine carbonatites world-wide have been mined commercially (Simandi & Paradis 2018).
Both the market and production of REE's is dominated by China who are also leading the research into the technological application of these metals. Western countries have recently become alarmed about the strategic advantage that China now exerts over REE technology such that new deposits of these elements are in high demand.