Kavango Resources Share Discussion Threads

[soulsauce] 10/11/2020 22:36

It is indeed very good that a company with a mkt cap less than 6m has managed to raise such a large amount at a relatively small discount. Tells me that people are starting to wake up to the possibilities.

[skiboy10] 10/11/2020 15:33

And if all goes to plan I think 15p will just be a brief stopping point on an extremely exciting journey.

[d220] 10/11/2020 15:01

They clearly see 15p as attainable. Hopefully they could then use the converted warrants to fund more drilling next year to delay the point at which they would need to do a deal. The higher our MCap is at that point, the better for all holders. 2021 is shaping up nicely!

[the chairman elect] 10/11/2020 14:30

If KAV get to 15p+ next year then I will have to become The Chairman Erect!

[soulsauce] 10/11/2020 14:12

Cheers Skiboy great work as usual.

[skiboy10] 10/11/2020 14:11

Mark EJ Fairbairn
⁦‪@MarkEJFairbairn‬297;

About to do a ⁦‪@StockBoxMedia‬̽7; interview with Micheal Foster & Mike Moles of ⁦‪@KavangoRes‬⁩

Should be out later today.

#KAV

2020-11-10, 05:55

[skiboy10] 10/11/2020 14:07

As D220 said earlier the 15p accelerator is interesting and a great move re: proof of concept drilling at the KSZ. Not just the extra funds (circa £3M) but why put 15p into the mix if it’s not likely to happen?

[skiboy10] 10/11/2020 14:01

From Twitter

@Ben_Turney

Kavango’s oversubscribed £2m raise this morning is proportionally one of the largest in the small cap exploration sector on #AIM in the last decade

It reflects the massive potential in the #KSZ & BoD’s commitment to put money in the ground

#KAV

It was also done at an 8% discount to 30 day VWAP

Stock was well bid in advance

Loop surveys to start on #KSZ soon, followed by target selection, followed by drilling.

Exciting times ahead for @KavangoRes!

#KAV

[skiboy10] 10/11/2020 13:54

MININGMAVEN on: 10 November 2020
Kavango Resources raises £2 million to push forward enormous KSZ opportunity in Botswana (KAV)

Kavango Resources (LSE:KAV) has raised £2 million in an oversubscribed placing to push forward across its portfolio of exciting exploration projects in Botswana.

The London firm placed 72.7 million shares with institutional, high-net-worth, and retail investors at 2.75p each, also adding on 30-month warrants with a 4.25p exercise price on a one-for-one basis. These new shares will represent approximately 27% of Kavango’s enlarged share capital.

The funds will primarily be used to complete “large loop” electromagnetic surveys across Kavango’s project in mining-friendly Botswana’s Kalahari Suture Zone (“KSZ”). It aims to identify high-priority targets for a major 2021 drill campaign.

The KSZ is a 450km-longe magnetic anomaly in the southwest of Botswana where Kavango is exploring for copper, nickel, and platinum group metals-rich sulphide ore bodies. It offers a distinctly similar geological setting to the Norilsk mining centre in Siberia, which accounts for 90% of Russia's nickel reserves, 55% of its copper, and virtually all of its platinum group metals.

Meanwhile, Kavango also plans to commit working capital to the further exploration of its interests in Botswana’s Kalahari Copper Belt (KCB) as well as its nearby Ditau project. Many of these licences are held within a strategic joint venture with the firm’s London exploration peer Power Metal Resources (LSE:POW).

On the placing, Kavango’s chief executive Michael Foster said: "We are very pleased to have received such strong backing from investors, as we now enter an exciting phase of Kavango's development. The Company sought to raise a maximum of £2 million and I am happy to report that the placement was over-subscribed.

“We are now well funded to pursue our ambitious exploration plans and unlock what we believe is the Kalahari Suture Zone's ("KSZ") considerable potential. We have taken great strides over recent years to validate our overall exploration hypothesis that the KSZ is host to one or more large Copper-Nickel-PGM deposits.

“Over recent weeks we have continued further analysis of the extensive geological data we have compiled and will announce shortly our highest priority target areas."

Kavango’s placing comes on the back of expert analysis of exploration data that recently confirmed the potential for a massive, transformational nickel and copper discovery at the Kalahari Suture Zone.

Towards the end of last month, the firm confirmed that conditions were right about 180 million ago in the KSZ to create highly concentrated pools of super valuable and sought-after base metals, such as nickel and copper. With this confirmed data in hand, Kavango can move to exploit its virgin territory, which covers 12 licences stretching nearly 7,000km2.

Under the Kalahari sands lie vast rock formation (see image, marked in red) where huge pools of molten metal could have been trapped over time.



This is a territory that has never been explored. Results from Kavango’s three years of field work and laboratory testing have consistently pointed to a Norilsk-size Nickel project. Now the company has the analysis that seems to conclude it and the funds in place to seize the opportunity on offer.

Author: Daniel Flynn

[gasmanmick] 10/11/2020 11:21

Emailed Mike Foster he said majority of placing for KSZ drilling not JV stuff I might have confused working capital with placing funds awaiting reply to confirm if correct apologies for my misunderstanding.
The fact that KAV are going to drill the KSZ is massive if we can prove the model works and find a sniff this will hugely improve terms with majors

[the chairman elect] 10/11/2020 09:15

Most probably best to e-mail the company gasmanmick but the SJV with AIM listed Power Metal Resources [LSE:POW] is covered by them for the first 2 years. Also the costs of getting this new company listed most likely in London during 2021

So the vast majority of the money will be going towards the KSZ and especially the "proof of concept" drilling campaign during 2021

[the chairman elect] 10/11/2020 09:10

Use of funds



The Company also plans to commit working capital to fund further exploration across its interests in the Kalahari Copper Belt ("KCB") and at Ditau. Two of the KCB prospecting licenses and the two Ditau prospecting licenses are subject to a Strategic Joint Venture with Power Metal Resources Plc. The other two KCB prospecting licenses are subject to a farm-in agreement with LVR GeoExplorers (Pty) Ltd.

[soulsauce] 10/11/2020 09:09

All adds to the value gasman for a news rich period, and I assume the lions share is for the KSZ.

[the chairman elect] 10/11/2020 09:07

Use of funds



Kavango's primary proposed work programme will be focused on the KSZ Project. Here the Company plans to complete "large loop" electromagnetic surveys to identify high-priority drill targets for a major drill campaign to commence in 2021.

[gasmanmick] 10/11/2020 08:50

Good placing but not happy that some funds will be spent on projects that are to be spun off into another company with no benefit to existing shareholders all this money should be spent on KSZ funding drilling of as many targets as possible

[the chairman elect] 10/11/2020 08:33

Many old faces here but when the HERD turn up on the KSZ "proof of concept" drilling campaign in 2021 expect serious fire works with the KAV share price!

[skiboy10] 10/11/2020 08:21

Good article and overview of the KSZ potential for anyone new here

“This really is elephant hunting of the highest order.

With a £5 million market cap, the potential upside here is immense.“

[d220] 10/11/2020 08:20

This has got the makings of a whole HERD of elephants! :-)

[the chairman elect] 10/11/2020 08:15

Elephant hunting in the KSZ

[skiboy10] 10/11/2020 08:15

And if and when they do decide to negotiate with potential JV partners this cash will put them in a much stronger negotiating position.

[cashandcard] 10/11/2020 08:12

Good news and can't wait for the outcome of those surveys. Slowly getting there.Cash

[d220] 10/11/2020 08:06

The fact that the BOD have elected to raise funds via a placing rather than doing a JV or other deal with a third party shows HUGE confidence IMO. They clearly didn't want to dilute their 100% ownership of the KSZ at this stage so they must be pretty certain that they can prove what is there in the next phase of exploration. 73m shares dilution is a price worth paying I believe.

[d220] 10/11/2020 07:52

Good placing IMO. 2.75p not bad and even if we do drop back to that, the fact that they were oversubscribed should support a bounce. And imminent news - the Company "will announce shortly our highest priority target areas".
I ove the "accelerator" clause on the 4.25p warrants. 10 days over 15p and they can force the take up! NICE!

[skiboy10] 10/11/2020 07:49

#News #Copper #Nickel #PGM

@KavangoRes plc is pleased to announce that it has conditionally raised £2,000,000 at a price of 2.75 pence per share.

“We are very pleased to have received such strong backing from investors..." Michael Foster, CEO #Kav

kavangoresources.com