Kavango Resources plc (LSE: KAV), the Southern Africa-focused metals exploration company, is pleased to announce the Company has raised £3,085,366 by the issue of 257,113,862 New Ordinary Shares in the capital of the Company (“New Ordinary Shares”) at a price per share of 1.2 pence, via an underwritten accelerated bookbuild (the “Accelerated Bookbuild”).
The Accelerated Bookbuild was underwritten by Purebond Limited, who will subscribe for 221,213,862 New Ordinary Shares.
The Company’s broker, First Equity Limited acted as coordinator of the Accelerated Bookbuild and placed 13,750,000 New Ordinary Shares (the “ABB Shares”) with investors at the Subscription Price per share. In addition;
A total of 18,750,000 shares are being acquired by two directors of the Company (the “Director Subscription Shares”) at the Subscription Price per share. CEO Ben Turney is acquiring 2,000,000 shares, and non-executive director Peter Wynter Bee will subscribe for 16,750,000 shares;
A total of 3,400,000 shares have been placed with other investors (the “Subscription Shares”) at the Subscription Price per share.
Ben Turney, Chief Executive Officer of Kavango, commented:
“We are pleased to have secured a further £3.08million finance for Kavango. The accelerated bookbuild was an innovative funding approach that was only possible thanks to Purebond’s strong support for Kavango and has helped us defend our recent share price gains in difficult market conditions.
We will use the funds to accelerate our various drill programmes and will continue to move forward at pace, as we explore for bulk-minable gold deposits in Zimbabwe and large-scale copper deposits in Botswana.
The second half of 2024 holds a great deal of promise for Kavango and our shareholders.”
Use of funds
Funds from the Accelerated Bookbuild will contribute to the Company’s general working capital, fund further exploration and development work and provide finance for acquisitions.
Exploration work will include (but not be limited to):
- Diamond drilling to test presence of multiple economic gold ore bodies in Hillside/Nara gold belt, Zimbabwe
- 5,000m diamond drill campaign to prove the Kara Anticline is a copper-mineralising system in the Kalahari Copper Belt, Botswana
- Completion of Hillside acquisition (announced >>> 23 April 2024)
- Capital investment into Kavango Mining to increase gold production (announced >>> 08 March 2024)
- Increasing project footprint in Zimbabwe, through securing additional options on projects
Admission and Total Voting Rights
On completion of the Accelerated Bookbuild, application will be made for the New Ordinary Shares to be admitted to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (“Admission”). It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00am on or around Thursday 16 May 2024.
Following Admission, the total issued share capital of the Company will consist of 1,562,683,176 Ordinary Shares. Therefore, the total number of voting rights in the Company is 1,562,683,176 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
Ben Turney
+46 7697 406 06
