Kavango Resources PLC (LON:KAV) is raising £1.94mln in a placing of shares at 5.5p. Each share comes with a two-year warrant attached, exercisable at 8.5p.
The news follows significant progress at several of Kavango’s exploration projects in Botswana, including the Kalahari Suture Zone which is already bearing the hallmarks of a Norilsk-style discovery.
In conjunction with the placing, Kavango announced a significant expansion to its exploration programmes at the Kalahari Suture Zone, including the drilling of 550 metre borehole on a target at the Hukuntsi prospect that hasn’t yet been drilled, but which is known as B1.
This target was the subject of a separate announcement at the end of last week, in which its dimensions and conductivity were spelled out.
The company is also considering the possible acquisition of two drill rigs and support vehicles to act as a dedicated team across the company's portfolio of projects.
"B1 appears to be the best conductor we have identified so far,” said Kavango chief executive Ben Turney.
“The 8,200Siemens reading is particularly encouraging. With a rig already mobilising in Hukuntsi, we plan to drill this target as soon as the two boreholes are complete in the A-C corridor. Exploration results this year, across all our projects, have consistently surpassed our expectations.”
The company also announced last week that work at its 50:50 joint venture with Power Metal Resources (LON:POW), the Ditau project, had identified seven specific drill targets.
"While our primary focus has been on developing our interests in the KSZ and Kalahari Copper Belt, we have been much encouraged by the number of drillable intrusive targets identified at Ditau,” added Turney.
“Most of these appear to be post Karoo in age and lying at a shallow depth beneath Kalahari sand cover. It is particularly encouraging to have identified seven drill-ready targets, with three of those being classified as high priority. Carbonatite hosted deposits of Rare Earth Elements (REEs) hold significant strategic and commercial value. Kavango's targets are relatively shallow, which should make it straightforward to determine this project's potential.