Power Metal Resources plc has sold its entire holding of 69,500,000 shares in Kavango Resources plc at 0.8p per share for £556,000.
JOINT VENTURE
Power Metal and Kavango previously held a two-year strategic joint venture of Kanye Resources.
In July 2022, Kavango said it intended to regain control of its interests by issuing 60 million new ordinary shares to Power Metal each at 3p per ordinary share.
Following the shares sale, Power Metal retains 60m warrants to subscribe for new Kavango shares, comprising 30m warrants each at an exercise price of 4.25p and 30m at an exercise price of 5.5p, both with an expiry date of 8 January 2025.
In addition, Power Metal holds a 1% net smelter return royalty over the Kalahari copper belt and Ditau Camp projects from the JV.
Chief executive officer Sean Wade said that the proceeds would add to the company’s “significant existing cash balances” and be utilised for accelerated exploration, including drilling of “certain high impact retained exploration projects targeting large-scale metal discoveries”.