Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that it has agreed to raise a further 500,000 before expenses by the issue of 27,777,777 New Ordinary Shares in the capital of the Company (“New Ordinary Shares”) at a price per share of 1.8 pence.
Strategic Investment
The 27,777,777 New Ordinary Shares will be conditionally issued via a direct subscription (the “Strategic Investment”) into the Company by a single strategic investor, Arigo Capital Limited (Rwanda).
Each New Ordinary Share will have, on a one-for-one basis, a warrant attached exercisable at 3p for a term of 24 months from the date of issue. Issue of the warrants will require the approval of shareholders and details of a general meeting at which such approval will be sought will be sent to shareholders in the near future.
Ben Turney, Chief Executive Officer of Kavango, commented:
“Following yesterday’s £3million strategic financing, I am extremely happy to welcome our second strategic investor into Kavango for an additional £500,000 investment.
With all the progress we’ve made across our portfolio over the last 12 months, this is an incredibly exciting time to be involved in this business.
We are now extremely well positioned to pursue our ambition of making multiple major metal discoveries in Botswana.”
Use of funds
The Strategic Investment, which is independent of the £3 million conditional financing announced yesterday, will contribute to the Company’s general working capital and, taken with the financing announced yesterday ( announced>>> 24 October 2022 ), will further fund proposed exploration work.
Admission
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 New Ordinary Shares will commence at 8.00 a.m. on 30 November 2022.
On Admission Arigo will hold 5.99% of the issued share capital of Kavango.
Total Voting Rights
Following Admission, the total issued share capital of the Company will consist of 463,423,703 Ordinary Shares*. Therefore, the total number of voting rights in the Company is 463,423,703* 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.
*Exclusive of shares issued as a result of successful publication of the prospectus, announced 24 October 2022.
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.