£500,000 Equity Placement

RNS Number : 9334Q

Kavango Resources PLC

25 February 2019

 

PRESS RELEASE

 25 February 2019

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

£500,000 EQUITY PLACEMENT

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 that it has raised £500,000 (before expenses) through a placing of 17,857,142 ordinary shares of 0.1p each ("Ordinary Shares") at a price of 2.8p each ("Placing Price") (the "Placing").

HIGHLIGHTS:

Placement

·     The Company has placed 17,857,142 Ordinary Shares at 2.8p/share (the "Placing Shares");

·     Proceeds (before expenses) amount to £500,000;

·     Each Placing Share has a warrant attached which is exercisable at a price of 12p from the earlier of the date falling one year after the date of Admission (defined below) or the date of publication of a prospectus until 31 July 2020 and which, if exercised, gives the warrant holder the right to an additional half warrant exercisable at 24p prior to 31 July 2022;

·     The placing was conducted by the Company's broker SI Capital Limited.

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

"We are pleased to announce the successful conclusion of a placement with clients of SI Capital Limited. The proceeds of £500,000 before expenses, will allow Kavango to accelerate its exploration program at the Kalahari Suture Zone (KSZ) project area. The KSZ project covers over 9,000 km² of prospecting licences prospective for base metals in southwest Botswana.

The funds will also assist us to review other highly selective but potentially very interesting natural resource opportunities in Botswana.

Our current exploration programme in Botswana is on track, with both the airborne electromagnetic (AEM) survey (see RNS dated 21 January 2019) and the drilling at Ditau, which forms part of the KSZ project (see RNS dated 28 January 2019) progressing according to plan. Further information is expected to be available shortly on both these programmes which the Company will of course relay to the market at that time".

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.

Application for admission

The Placing Shares will rank pari passu in all respects with the existing Ordinary Shares. Application will be made for 17,857,142 Placing 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 Placing Shares will commence at 8.00am on 12 March 2019.

Total Voting Rights

Following the issue of the Placing Shares, the total issued share capital of the Company will consist of 152,027,138 Ordinary Shares. Therefore, the total number of voting rights in the Company is 152,027,138 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. 

Notes for Editors:

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 15 prospecting licences covering 9,231 km² of ground, including most of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Cu-Ni-PGE rich sulphide orebodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting the World Class Norilsk Ni-Cu-PGE orebodies in Siberia.

Exploration Model:

Kavango's exploration model is based upon the search for magmatic massive sulphide orebodies buried beneath up to 200m of overburden. The identification of drill targets follows a carefully constructed exploration program specifically developed by the Company for exploration in areas covered by Kalahari and Karoo sediments and sands.

The exploration program is initiated by identifying the location of magmatic intrusive rocks from an analysis of the regional magnetic surveys published by the Ministry of Mines. This is followed by an airborne electro-magnetic survey (AEM) carried out over the magnetic anomalies that have signatures indicating the presence of intrusive rocks at depth. By using the latest generation of low frequency helicopter-borne EM, conductors lying below the Kalahari/Karoo cover can be identified for further investigation. These conductors can be tested on surface by very high sensitivity soil sampling*, which can detect metal ions transported from buried metal rich massive sulphide deposits associated with the emplacement of magmatic intrusive rocks.

Kavango uses a ground based geophysical technique known as Controlled Source Audio frequency Magneto Tellurics (CSAMT)** to identify the exact location of the conductors. The shape, orientation and depth of the conductors will determine if the conductor should be drilled. The presence of a metal in soil anomaly is also used to prioritise the conductors.

The next phase of the exploration involves the drilling of the conductor to determine the presence of sulphide mineralisation and its metal component (discovery). This is followed by the evaluation of the discovery, which will determine whether the deposit is large enough and rich enough to make an economically viable mine (feasibility).

*Kavango geologists have pioneered a high resolution soil sampling technique to detect ultra-fine metal particles which have been transported in solution from considerable depths of burial to the surface by capillary action and transpiration. Evaporation leaves the metal ions as accumulations within a surface "duricrust" which is then sampled and analysed. Zinc, which is the most mobile of the base metal elements (i.e. goes into solution easily) acts as a pathfinder to mineralization at depth.

**Massive sulphide (base metal) deposits can be detected by CSAMT because they conduct electricity easily (conductors) as opposed to silicate wall rocks (resistive).

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information please contact:

Kavango Resources plc
Michael Foster	[phone]
[e-mail]
City & Westminster Corporate Finance LLP	[phone]
Nicola Baldwin

SI Capital Limited                                                                                                 [phone]

Nick Emerson

****************************ENDS**************************************

 

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