By ETimes
Kavango Resources, a metals exploration company, has indicated plans to raise about £3,08 million (US$3,86 million) by issuing 257,11 million new ordinary shares at a price per share of 1.2 pence through an underwritten accelerated bookbuild.
Accelerated bookbuilding is a form of offering in which companies offer shares during a very short time window, generally lasting between 24 and 48 hours, to institutional investors.
It allows established institutions to raise capital quickly by dividing up the market risk between the issuing firm or shareholder and the underwriting institution.
Purebond Limited is the underwriter of the Accelerated Bookbuild and will subscribe for a minimum of 135 million new ordinary shares.
The funds raised will support various exploration initiatives, including diamond drilling in Zimbabwe and Botswana to test for economic gold ore bodies and copper-mineralising systems.
“As the prices of gold and copper continue to rise, this is an ideal time to make major discoveries in both metals,” Kavango’s chief executive officer, Ben Turney, said.
Initial assay results from Kavango Resources’ Hillside Prospect 4 gold project in Zimbabwe suggest the potential for over one million ounces of mineable gold.
“We will use some of the funds raised in the bookbuild to take the diamond drill rig back to Hillside to test the strike, width, and extent of these possible discoveries.”
In Botswana, Kavango is gearing up for a 5,000-metre diamond drill program at the Karakubis Copper Project, aiming to unveil the potential of copper or silver deposits in the Kalahari Copper Belt.
“We are keen to start this landmark drill campaign and will use some of the funds raised to deploy a second rig to the Karakubis Project. This will halve the time it takes for us to complete the programme,” Turney added.
The successful completion of the Accelerated Bookbuild and subsequent admission to the London Stock Exchange will likely influence the company’s market valuation, investor sentiment, and trading dynamics.
The Accelerated Bookbuild will open on Monday, April 29 at 8:00 and close on Tuesday, April 30 at the latest at 1700.