18:00 Mon 25 Feb 2019
Kavango Resources - £500,000 Equity Placement
PRESS RELEASE
25 February 2019
("Kavango" or "the Company")
HIGHLIGHTS:
Placement
· The Company has placed 17,857,142 Ordinary Shares at 2.8p/share (the "Placing Shares");
· Proceeds (before expenses) amount to
· 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
· The placing was conducted by the Company's broker
"We are pleased to announce the successful conclusion of a placement with clients of
The funds will also assist us to review other highly selective but potentially very interesting natural resource opportunities in
Our current exploration programme in
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
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
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
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
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:
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+44 20 3651 5705 |
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+44 20 7917 6824 |
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SI Capital Limited +44 1483 41 3500
Nick Emerson
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