Last checked at 10 Jan 2022 17:05
PRESS RELEASE
10 January 2022
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Issue of options & Section 430(2B) Statement
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announces the Board has approved the grant of 4,500,000 share options to certain consultants to the Company and key team members (the "Consultant Options") and 2,000,000 share options to David Smith, Non-executive Chairman of the Company (the "Director Options").
The Consultant Options will be subject to a vesting period of one year from 01 December 2021, with half the Consultant Options vesting after six months and the remainder vesting after twelve months, following continuous employment or commercial engagement with the Company. The Consultant Options are exercisable at a price of 5 pence per Ordinary Share for a period of seven years. The Consultant Options carry a vesting condition whereby the Consultant Options only become exercisable once the Company's reported closing mid-market share price closes above 7.5p on five separate trading days.
The Director Options will be subject to a vesting period of one year, with half the Director Options vesting after twelve months from 01 December 2021 and the remainder vesting after eighteen months from 01 December 2021, provided Mr Smith remains a director within the Kavango group. The Director Options are exercisable at a price of 7.5 pence per Ordinary Share for a period of seven years. The Director Options only become exercisable once the Company's reported closing mid-market share price closes above 15p on five separate trading days. The Director Options are also conditional upon the Company's issued share capital increasing to a level such that the total number of options granted to directors and group employees remains below the ten per cent limit for such options to which the Company aims to adhere.
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
"If Kavango delivers one or more major mineral discoveries, it will be because of the intelligent, resourceful and inspired work of our people and strategic partners. Our latest option awards lock in a number of key commercial relationships and are directly aligned with generating substantial shareholder returns.
Thanks to booming metal prices, we are operating in an extremely competitive environment for talented technical personnel. A company like Kavango has to manage its finances carefully. The reality is we cannot compete in recruitment on salary terms against better-funded, larger competitors. However, given the exciting promise of our exploration projects in Botswana, we are able to offer potentially much more lucrative equity incentives to attract and retain the best people we can.
Our creative approach to equity incentivisation remains a central pillar of Kavango's strategy. It sets us apart from our direct competitors and has already enabled us to put together the kind of high quality technical team normally associated with much larger firms.
I believe this could prove to be the decisive factor in determining our future success."
Section 430(2B) Statement in relation to Michael Foster's retirement
As required by Section 430(2B) of the Companies Act 2006, the Company confirms that no remuneration is payable consequent upon or in respect of Michael Foster's retirement. Michael will receive pro-rated Board fees to the date of his retirement. He will not receive any payment for loss of office or any other payment in relation to the cessation of his appointment with the Company. However, in accordance with the terms of the 'founders' options granted to Michael on 6 November 2018, 1 May 2019 and 5 May 2020 will not lapse upon his departure from the Board.
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
bturney@kavangoresources.com
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson