Kavango Resources PLC (LSE: KAV, OTC: KVGOF) announced a £6 million conditional equity investment to be completed in two stages through a conditional subscription by Purebond Ltd, an existing shareholder with a 12.05% stake.
The subscription involves the conditional issuance of 140 million new ordinary shares at a price of 1p per share, as well as the conditional issuance of 460 million shares. The second stage is contingent on the Financial Conduct Authority’s (FCA) approval of a prospectus and shareholder approval for a waiver of the takeover code.
Purebond is a wholly-owned subsidiary of Solai Holdings, while Solai Pension Schemes hold 1 million shares in Kavango, accounting for less than 1% of the total. After the first stage of the subscription, Purebond and Solai will jointly hold 226 million Kavango shares, representing a 26.7% stake. If the second stage is completed, their combined holding will increase to approximately 52.5%.
Kavango’s CEO, Ben Turney, described the equity financing as “a seminal moment for our company.” He continued, “This year, we’ve refocused our efforts in the Kalahari Copper Belt on our highly prospective Karakubis license block, identified the lode gold potential at Ditau, and made final preparations to drill the 28,700 Siemens B1 Conductor.
We are also in the final stages of at least one acquisition. With Purebond’s significant support, we can confidently pursue our exploration strategy, knowing we have the necessary resources.”
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