Strategic Financing to raise £3million

RNS Number : 8056D

Kavango Resources PLC

24 October 2022

 

PRESS RELEASE

24 October 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Strategic Financing to raise £3million  

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that it has conditionally raised 3,000,000 before expenses by the issue of 166,666,660 New Ordinary Shares in the capital of the Company ("New Ordinary Shares") at a price per share of 1.8 pence.

Fundraising

The 158,555,555 New Ordinary Shares have been conditionally placed by First Equity Limited ("First Equity"), on behalf of the Company with institutional and other investors, including high net worth and retail investors (the "Placing").

The Placing includes one strategic cornerstone investor, who subscribed for over half of the Placing amount.

In addition to the Placing, the Company has also conditionally completed a direct subscription (the "Subscription") for the issue of 8,111,105 New Ordinary Shares. 

Each New Ordinary Share has, on a one-for-one basis, a warrant attached exercisable at 3p for a term of 24 months from the date of issue. Issue of the warrants will require the approval of shareholders and details of a general meeting at which such approval will be sought will be sent to shareholders in the near future.

Further details of the Placing and Subscription, including the expected date of admission of the New Ordinary Shares ("Admission"), will be set out in a prospectus ("Prospectus") to be published in electronic form and available on the Company's website.

Ben Turney, Chief Executive Officer of Kavango, commented:

"I am delighted to announce the successful completion of this £3million fund raising for Kavango, a transformational financing for the Company. 

Supported by many existing shareholders and new investors, we are now empowered to drive forward a dramatic exploration programme across our portfolio. Our current key focus is on our Kalahari Copper Belt interests, where the drilling programme is underway.

We are now fully funded for our ambitious plans through 2023 and are in an excellent position to achieve our goal of becoming the leading minerals exploration company in Botswana."

Use of funds

The Placing and Subscription are to raise funds to meet exploration costs across the Company's portfolio of projects in Botswana, and general working capital as set out below.

Funds raised from the Placing and Subscription will primarily be used to carry out proposed exploration work, provide working capital to the Group and to meet its regulatory and administrative commitments.  

Details of the Placing and Subscription

The New Ordinary Shares will represent approximately 27.7per cent. of the Enlarged Share Capital. The New Ordinary Shares will rank pari passu in all respects with Existing Ordinary Shares including all rights to dividends and other distributions declared, made or paid following Admission and will be issued as fully paid.  Application will be made for the New Ordinary Shares to be admitted to the Standard Segment of the Official List and to the London Stock Exchange. The Placing and Subscription are conditional, inter alia, on the approval of a Prospectus in relation to the Placing and Subscription Shares no later than 12 December 2022, or such later date as the Company and First Equity may agree.

In connection with the Placing, the Company shall issue

Subject to the approval of shareholders, one warrant will also be issued for each New Ordinary Share subscribed for at an exercise price of 3p for a period of thirty months from issue ("Financing Warrants"). Shareholder approval will be sought to the issue of the Financing Warrants in due course.

Total Voting Rights 

Following the issue of the Placing and Subscription Shares, the Company will have 602,312,586 Ordinary Shares in issue.

Prospectus

The Company is in process of seeking approval from the Financial Conduct Authority for its prospectus to be issued in connection with the Placing and Subscription. 

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.

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

[e-mail]

[phone]

First Equity (Joint Broker)

[phone]

Jason Robertson   

SI Capital Limited (Joint Broker) 

[phone]

Nick Emerson

 

END

 

 

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