Kavango Resources plc (LSE: KAV), the metals exploration company focused on Southern Africa, is pleased to share the following corporate update.
Progress on new acquisition
Kavango confirms it is in advanced discussions regarding a potential exclusive 2-year option to acquire a gold exploration and development project in Zimbabwe (the “Option”). The project area encompasses several contiguous gold claims over a 3.4km strike, which have supported historical high-grade underground mining and more recent small-scale surface mining operations (the “Project Area”).
The Project Area has never been explored using modern methods or technology. The tentative terms of the Option would allow Kavango to conduct unrestricted field due diligence (exploration and drilling) before deciding whether to exercise the Option.
Kavango has carried out extensive preliminary due diligence before negotiating the Option, including two field visits to the Project Area.
Potential £6,000,000 conditional equity investment in Kavango
Concurrently with the acquisition discussions, Kavango has been in talks with a single investor about a potential £6,000,000 conditional equity investment in the Company through a non-brokered direct subscription (the “Proposed Subscription”).
If terms are finalized and agreed upon, the Company expects to complete the Proposed Subscription at 1p per share. Full completion of the Proposed Subscription would be subject to (i) approval by the Financial Conduct Authority of a prospectus; (ii) shareholder approval of a waiver in accordance with Rule 9 of the Takeover Code; and (iii) the Company having the necessary authorities to issue the subscription shares.
Expiration of April 2020 warrants
On April 15, 2020, Kavango announced a £358,000 placement and subscription (the “April 2020 Placing”). As part of the April 2020 Placing, the Company issued “A” and “B” warrants with a 3-year term. All unexercised “A” and “B” warrants have now expired.
More information about the Company and its business interests can be found on its website at www.kavangoresources.com and on Twitter at #KAV.
