Kavango Resources raises £0.5m to accelerate Botswana work

Botswana-focussed exploration group Kavango Resources has raised £0.5m before expenses through a placing of 17,857,142 ordinary shares, at a price of 2.8p each, it announced on Monday.

The London-listed firm said each placing share had a warrant attached, which would be exercisable at a price of 12p from the earlier of the date falling one year after the date of admission, or the date of publication of a prospectus until 31 July 2020.

If exercised, it gave the warrant holder the right to an additional half warrant exercisable at 24p prior to 31 July 2022.

“We are pleased to announce the successful conclusion of a placement with clients of SI Capital,” said Kavango Resources chief executive officer Michael Foster.

“The proceeds of £0.5m before expenses will allow Kavango to accelerate its exploration programme at the Kalahari Suture Zone (KSZ) project area.

“The KSZ project covers over 9,000 square kilometres of prospecting licences prospective for base metals in southwest Botswana.”

Foster said the funds would also assist the firm to review other “highly selective” but “potentially very interesting” natural resource opportunities in Botswana.

“Our current exploration programme in Botswana is on track, with both the airborne electromagnetic survey and the drilling at Ditau, which forms part of the KSZ project progressing according to plan.

“Further information is expected to be available shortly on both these programmes which the company will of course relay to the market at that time.”