Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the Company has signed a Memorandum of Understanding (“MoU”)to accelerate its 90 per cent (“90pc”) ownership of the LVR Joint Venture (the “LVR JV”) in the Kalahari Copper Belt (the “KCB”).
The LVR JV incorporates prospecting licences PL082/2018 & PL 083/2018, which cover 1,091km2 of prospective ground the KCB (the “Project”). Under the original terms of the LVR JV, the Company had been earning into 90pc ownership of the Project, through a pre-agreed spending programme.
However, results from field exploration have increased the Company’s confidence in the Project. Consequently, Kavango made a proposal to LVR GeoExplorers (Pty) Ltd (“LVR”) to accelerate its 90pc ownership.
Kavango and LVR have now signed the MoU to the effect that in return for Kavango taking an immediate 90pc stake in the LVR JV, the Company will issue to LVR 2,000,000 Ordinary Shares (at an issue price of 5.5p per share) and 2,000,000 warrants, exercisable at 8.5p per share for a period of two years (the “Warrants”)
The Warrants are subject to an acceleration clause, whereby if the Company’s shares close above 17p for 5 trading days, the Company may write to warrant holders at any time providing 10 working days’ notice of accelerated exercise, with 10 working days thereafter for payment
Kavango CEO Ben Turney will host a live shareholder webinar via Twitter Spaces through the Company’s Twitter account at 1900GMT on Monday 29 November to discuss the 90pc ownership acceleration in the LVR JV and how it fits with Kavango’s strategy (visit https://twitter.com/KavangoRes or use the handle @KavangoRes for more information)
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“The LVR JV is perhaps our “forgotten” project. However, this does not reflect the exploration potential of the two prospecting licences held within it. PL082 is particularly encouraging, with what appears to be a conductor target, analogous with the Banana Zone deposit on the other side of Ghanzi Ridge.
To simplify the JV arrangement and accelerate our direct 90% direct interest in the joint venture, we made an offer to LVR GeoExplorers, which I am very happy to report they accepted. Since Kavango was already going to carry significant exploration expenditure under the original terms of the earn-in, doing this deal at this stage makes sense.
We now need to finalise the terms described in the memorandum of understanding to conclude the deal. In the meantime, field work will continue across both prospecting licences and we expect to release further updates in the near future. “
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
First Equity (Joint Broker)
+44 207 374 2212
SI Capital Limited (Joint Broker)
+44 1483 413500