9th May 2023 12:20
(Alliance News) - Kavango Resources PLC on Tuesday said a GBP6.0 million investment in the company by Purebond Ltd will completed via a direct subscription.
The London-based, Botswana-focused metals exploration company said it will issue 140.0 million new shares at 1 pence each, in the first stage of the investment, with a further 460.0 million new shares also at 1p each issued in the second stage.
The second stage is subject to the approval of the UK Financial Conduct Authority and independent shareholders.
Following the investment, Purebond - which currently holds 85.0 million shares, around a 12% holding - will hold 53% of the company, or 686.0 million shares.
Kavango said the funds will be used for the company's general working capital.
Chief Executive Ben Turney said: "Today's GBP6million two stage conditional equity financing is a seminal moment for our company. We've worked extremely hard over the last 18 months, in challenging conditions, to position the business to succeed. We've made significant progress on all fronts and greatly sharpened our exploration focus.
"With the substantial backing of Purebond, we now move forward with confidence that we have the resources available to pursue our exploration strategy."
Kavango shares rose 16% to 1.10 pence each in London on Tuesday afternoon.
By Harvey Dorset, Alliance News reporter
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