Kavango Resources PLC (LON:KAV) said it has raised £500,000 in a share placing to fund an acceleration of its Kalahari Suture Zone (KSZ) project in southwest Botswana.
The exploration firm said it had raised the funds through the placing of around 17.9mln new shares at a price of 2.8p each, a 14% discount to its last close price of 3.25p.
READ: Kavango higher, expects to commence drilling at Ditau in early February
Michael Foster, chief executive of Kavango, said that the funds would also assist in the review of “other highly selective but potentially very interesting natural resource opportunities in Botswana”, adding that the company’s airborne electromagnetic survey and drilling at Ditau, which forms part of the KSZ project, were on track.
Each share also has a warrant attached that is exercisable at a price of 12p within one year from the date of admission (expected on 12 March 2019) or the date of publication of a prospectus until 31 July 2020. If exercised, the holder will receive a right to another half warrant exercisable before 31 July 2022.
In early deals on Monday, Kavango shares were down to 3p, 7% higher than the placing price.