Kavango Resources plc has raised £3,085,366 by issuing 257,113,862 new ordinary shares in the capital of the company at a price per share of 1.2 pence, via an underwritten accelerated bookbuild.
DIRECTORS
The company’s major shareholder Purebond Ltd, which subscribed for 221,213,862 new ordinary shares, underwrote the accelerated bookbuild.
Purebond’s previous May 2023 investment in Kavango was a £6m subscription in two phases, which would potentially give it a majority holding in the southern Africa-focused explorer.
Kavango’s broker, First Equity Ltd acted as co-ordinator of the accelerated bookbuild and placed 13.75m new ordinary shares with investors at the subscription price per share.
Chief executive Ben Turney will subscribe for 2m shares and non-executive director Peter Wynter Bee will subscribe for 16.75m shares.
A further 3.4m shares have been placed with other investors at the same price.
Proceeds will contribute to exploration in Hillside/Nara gold belt in Zimbabwe and a 5,000m diamond drill to prove the Kara Anticline is a copper-mineralising system in the Kalahari copper belt, Botswana.
Funds will also help complete acquisition of Hillside, invest in the company’s subsidiary Kavango Mining to increases gold production, as well as secure additional options in Zimbabwe.
Following admission, Kavango’s total issued share capital will comprise 1,562,683,176 ordinary shares.
Purebond has also invested in Golden Metal Resources plc as well as Golden Metal majority shareholder Power Metal Resources plc, in which on 30 January and prior to the share consolidation, the investor held 75,173,006 voting rights, equal to 3.6%.