Kavango Resources is raising £3.08 million ($3.86 million) by the issue of 257 million new ordinary shares in the capital of the company at a price per share of 1.2 pence, through an underwritten accelerated bookbuild.
Funds raised in the bookbuild will contribute to the company's general working capital, fund further exploration and development work and provide finance for acquisitions.
It said exploration work will potentially include diamond drilling to test the presence of multiple economic gold ore bodies in the Hillside/Nara gold belt, Zimbabwe and a 5,000m diamond drill campaign to prove the Kara Anticline is a copper-mineralising system in the Kalahari Copper Belt of Botswana.
The accelerated bookbuild opened on Monday 29 April and closed at the end of the day on Tuesday 30 April.
“As the prices of gold and copper continue to rise, this is an ideal time to make major discoveries in both metals,” said Kavango chief executive Ben Turney.
“Thanks to Purebond's powerful financial backing, Kavango has developed its projects swiftly in Zimbabwe and Botswana.
“Today's £3.08 million accelerated bookbuild will enable us to build on this momentum.”
The company recently announced the results of two successful gold exploration holes at its Hillside Project in Zimbabwe.
Meanwhile, Kavango believes it has identified the right geological setting and structural controls for potential large-scale copper/silver deposits across the Kara Anticline, having recently completed detailed surveying and mapping.
It will test whether the Kara Anticline contains a copper mineralised system.
However, physical indicators are encouraging, with the presence of pathfinder minerals galena and sphalerite, it said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
