Kavango Resources PLC Conversion of Power Metals Convertible Loan Note (2719T)
July 17 2020 - 2:00AM
UK Regulatory
TIDMKAV
RNS Number : 2719T
Kavango Resources PLC
17 July 2020
PRESS RELEASE
17 July 2020
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Conversion of Power Metals Convertible Loan Note
Kavango Resources plc (LSE:KAV), the exploration company
targeting the discovery of world-class mineral deposits in
Botswana, is pleased to announce that Power Metals Plc (LSE:POW)
("Power Metals") has exercised its right to convert its entire
GBP38,000 convertible loan ("CLN") in the Company into shares.
Further to the announcement on 15 April 2020, Kavango issued a
GBP38,000 CLN to Power Metals (the "POW CLN"), as part of the
GBP468,487 financing (the "Financing") and in conjunction with
Power Metals' conditional acquisition of a 51% stake in the
Company's Ditau exploration project in Botswana.
Under the terms of the Financing, Power Metals could convert the
POW CLN into 4,750,000 shares in Kavango (the "Conversion Shares"),
on issue of a written conversion notice (the "Conversion Notice").
Kavango also agreed that on conversion of the POW CLN it would
issue 4,750,000 warrants in the Company to Power Metals, with an
exercise price of 1p per share and a 3-year exercise period from 21
April 2020 (the "POW Warrants").
Following Power Metals' exercise of its conversion rights, the
Company has now issued the Conversion Shares and POW Warrants to
Power Metals.
Ditau Due Diligence
Kavango continues to work with Power Metals and its technical
team in relation to the conditional acquisition of a 51% ownership
interest in the Ditau Project.
Further updates will be provided in due course.
Application for admission
The Conversion Shares will rank pari passu in all respects with
the existing Ordinary Shares. Application will be made for the
4,750,000 Conversion Shares to be admitted to trading on the
Standard List segment of the main market of the London Stock
Exchange ("Admission"). It is expected that Admission will become
effective and that dealings in the Conversion Shares will commence
at 8.00am on, or about, 31 July2020.
Total Voting Rights
Following the issue of the Conversion Shares, the total issued
share capital of the Company will consist of 192,955,709 Ordinary
Shares. Therefore, the total number of voting rights in the Company
is 192,955,709 and this figure may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change in their interest, in the share capital of the Company.
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
Michael Foster
mfoster@kavangoresources.com
SI Capital Limited (Broker)
+44 1483 413500
Nick Emerson
Note to Editors:
Economic Potential of Carbonatites
The Ditau Project contains 10 carbonatites, otherwise known as
'ring structures'.
Until recently carbonatites were regarded as unusual and
academically interesting geological bodies but significant interest
was only generated once the demand for REEs was established (in the
last few years). Hitherto many carbonatites were mined for their
phosphate content (fertilizer), or for economic deposits of
Niobium, Strontium, Uranium, Thorium, Magnetite, Barium and
Vermiculite. One of the world's most productive carbonatites,
Palabora, has been in production continuously since 1953 and is
South Africa's principal source of copper. About one out of nine
carbonatites world-wide have been mined commercially (Simandi &
Paradis 2018).
Both the market and production of REE's is dominated by China
who are also leading the research into the technological
application of these metals. Western countries have recently become
alarmed about the strategic advantage that China now exerts over
REE technology such that new deposits of these elements are in high
demand.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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