17th Jul 2020 11:41
(Alliance News) - Mineral exploration company Kavango Resources PLC on Friday said Power Metal Resources PLC has converted its loan notes, worth GBP38,000, in the company into shares at 0.8 pence each.
The conversion is centred around a transaction by metal exploration and development company Power Metal to acquire a 51% ownership in the Ditau Camp project held by Kavango in Botswana.
London-based Kavango issued a GBP38,000 credit-linked note to Power Metals, in April, as part of its GBP468,487 in financing, in conjunction with Power Metal's conditional acquisition of the 51% stake in the Ditau project.
Kavango agree that on conversion it would issue 4.8 million warrants in the company to Power Metal for a price of 1p each with a three-year exercise period from April 21.
The total issued share capital of Kavango will consist of 193 million shares following the conversion of shares.
Kavango shares were up 7.0% at 1.44 per share on Friday morning in London.
By Greg Roxburgh; [email protected]
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