TIDMKAV
RNS Number : 6649T
Kavango Resources PLC
26 November 2021
PRESS RELEASE
26 November 2021
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
KCB: MoU to accelerate 90pc ownership of the LVR JV
Kavango Resources plc (LSE:KAV), the exploration company
targeting the discovery of world-class mineral deposits in
Botswana, is pleased to announce the Company has signed a
Memorandum of Understanding ("MoU")to accelerate its 90 per cent
("90pc") ownership of the LVR Joint Venture (the "LVR JV") in the
Kalahari Copper Belt (the "KCB").
The LVR JV incorporates prospecting licences PL082/2018 & PL
083/2018, which cover 1,091km (2) of prospective ground the KCB
(the "Project"). Under the original terms of the LVR JV, the
Company had been earning into 90pc ownership of the Project,
through a pre-agreed spending programme.
However, results from field exploration have increased the
Company's confidence in the Project. Consequently, Kavango made a
proposal to LVR GeoExplorers (Pty) Ltd ("LVR") to accelerate its
90pc ownership.
Kavango and LVR have now signed the MoU to the effect that in
return for Kavango taking an immediate 90pc stake in the LVR JV,
the Company will issue to LVR 2,000,000 Ordinary Shares (at an
issue price of 5.5p per share) and 2,000,000 warrants, exercisable
at 8.5p per share for a period of two years (the "Warrants")
The Warrants are subject to an acceleration clause, whereby if
the Company's shares close above 17p for 5 trading days, the
Company may write to warrant holders at any time providing 10
working days' notice of accelerated exercise, with 10 working days
thereafter for payment
Kavango CEO Ben Turney will host a live shareholder webinar via
Twitter Spaces through the Company's Twitter account at 1900GMT on
Monday 29 November to discuss the 90pc ownership acceleration in
the LVR JV and how it fits with Kavango's strategy (visit
https://twitter.com/KavangoRes or use the handle @KavangoRes for
more information)
Ben Turney, Chief Executive Officer of Kavango Resources,
commented:
"The LVR JV is perhaps our "forgotten" project. However, this
does not reflect the exploration potential of the two prospecting
licences held within it. PL082 is particularly encouraging, with
what appears to be a conductor target, analogous with the Banana
Zone deposit on the other side of Ghanzi Ridge.
To simplify the JV arrangement and accelerate our direct 90%
direct interest in the joint venture, we made an offer to LVR
GeoExplorers, which I am very happy to report they accepted. Since
Kavango was already going to carry significant exploration
expenditure under the original terms of the earn-in, doing this
deal at this stage makes sense.
We now need to finalise the terms described in the memorandum of
understanding to conclude the deal. In the meantime, field work
will continue across both prospecting licences and we expect to
release further updates in the near future. "
Further information in respect of the Company and its business
interests is provided on the Company's website at
www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
bturney@kavangoresources.com
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
NOTES TO EDITORS
KAVANGO's INTERESTS IN THE KCB
Kavango's PLs in the KCB include:
The Kanye Resources JV
Ø 50 % working interests in 10 prospecting licenses held in a
Joint Venture with Power Metal Resources (LSE:POW), which cover
4,257km (2) . Kavango is operator.
The LVR JV
Ø A proposed 90% interest in prospecting licenses PL082/2018
& PL 083/2018, held in a Joint Venture with LVR GeoExplorers
(Pty) Ltd ("LVR"), which cover 1,091km (2) . Kavango currently owns
25% of the LCR JV. Kavango is operator.
GEOLOGICAL SETTING
The Kanye Resources and LVR project areas include lengthy redox
boundaries, close to surface, that represent excellent exploration
targets.
The redox boundaries were formed several hundred million years
ago in active sedimentary basins flooded by shallow seas. Organic
matter accumulating on the sea floor created anoxic conditions,
which formed a chemical barrier to metal ions rising upwards
through the sediments as the basin subsided. The change in
chemistry caused the precipitation of metal species (carbonates,
sulphides etc.) including copper and silver on or just below the
redox boundary.
Subsequent tectonic activity folded the sedimentary layers,
which was often accompanied by the concentration of metals into the
fold hinges and shear zones. Fold hinges pointing upwards are known
as anticlines, while the downward pointing hinges are called
anticlines.
Several large copper/silver ore deposits have been discovered on
the KCB in association with anticlines in areas now held under
licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a
privately owned mining development company). These deposits are
relatively close to surface and many are amenable to open pit
mining operations.
Accumulations of metals can be traced along the strike of
geochemical reduction-oxidation ("redox") boundaries (sometimes for
many kilometres) because they often contain iron and have a higher
magnetic signature than the surrounding rock.
SOUTH GHANZI EXPLORATION STRATEGY
The South Ghanzi PLs (which are within the Kanye Resources JV)
lie within the Central Structural Corridor of the KCB immediately
south of the town of Ghanzi.
Sedimentary horizons hosting copper/silver mineralisation in the
KCB are known to be conductive. AEM surveys are a recognised and
tested exploration method for identifying high priority drill
targets.
Kavango's strategy in the KCB is to identify conductive targets
and then to complete follow up investigation, using other proven
exploration methods including geological mapping and testing of
soil geochemistry through extensive sampling. The correlation of
positive zinc and copper soil geochemistry readings to positive AEM
results is a highly encouraging exploration vector.
Given Kavango's understanding of the regional lithology and
stratigraphy of the KCB, the Company is optimistic about the
progress it has made in South Ghanzi over recent months.
Specifically, the identification of a number of smaller
anticlines associated with conductors suggests there are seven
large, promising drill targets at South Ghanzi.
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END
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