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So just the prospectus to go and Purebond will be injecting £4.6m at 65% premium to current price. Seems a bit of a no brainer.
Prospectus is with the FCA and should be cleared any day now.
I totally agree and have been saying as much for several weeks now. Nab these cheap shares whilst it's relatively quiet. Big move up incoming on financing news to land soon. All imo and dyor
SP contains a risk premium until the money is in the bank
The £1.4 million has already been received.
Well, should be a strong quarter for KAV coming up. New base is 1p. Would be great to end the year 1.5p-2p. They'll be in a very strong financial position.
It's a hard one to call here ATM.
I do agree with the capital being at 1p it certainly underpins the current market price strongly.
On the flip side if I focus purely on mcap which is a sensible approach; with the current shares plus the new placing shares @1p (excluding any warrants/options etc) the shares in issue will be around the 1.3 billion.
So the mcap post dilution, at the current 0.65p offer, would value KAV at around 8.5 million GBP. Or 13 million at the placing price.
Prior to the recent KSZ news I'd have said that's fair but the asset base is hard to attribute a value to since the move to zim and the situation in Bots.
That said they'll have a significant part of the mcap covered by cash at the current price.
In short I personally think KAV are probably valued about right somewhere between current price and the placing price. I'd struggle to put a case across that they should be valued north of the placing price ATM.
Therefore the key now for me is really what KAV can prove up asset wise with the exploration from the cash injection. If they want a value above the placing price then the market will likely need to see more evidence from the assets. This is what the market price and action is telling me.
Will have to wait and see.
Atb
External money in at 1p and that to in size, has to be floor imo.
I think once the circular comes out shortly for shareholder approval then market will take it higher quite rapidly, they are ready to go on the ground. You need to be in before.
Atb
It won't be the floor in this case tradedesk, IMO at least. That said, I can see why you and LegalWolf are forcing this play.
The following from F79 yesterday sums it up.
"In short I personally think KAV are probably valued about right somewhere between current price and the placing price. I'd struggle to put a case across that they should be valued north of the placing price ATM.
Therefore the key now for me is really what KAV can prove up asset wise with the exploration from the cash injection. If they want a value above the placing price then the market will likely need to see more evidence from the assets. This is what the market price and action is telling me."
Purebond stand to be down on their investment from day 1. They'll join c.90% of the KAV register in having their wealth eroded by the management of this company.
They are going for lower hanging fruit in Zim. In fact, the gold is already there. Similarly, they are going for what they regard as their best prospect at the KCB. They will have £6 million to attack these projects with, and CEO is actually moving to Zim in the new year.
We can debate where the share price might get to, but there is little debate that with the above exploration coming up within the next 6 months, that 0.6p represents extremely good odds for upside from these levels. Forget what I and others have been saying, just look at some of the large trades that have been going in to accumulate the stock in the 0.5s. At some point when those are all soaked up, it will be stock at these levels that will be hard to come by.
So accumulate what you can at these basement levels and then just wait for the funding/prospectus RNS to land to kickstart the fightback. All imo and dyor
Share prices are not derived from rational, logical thinking but from sentiment.
Exactly! The immediate sentiment will be to realise the gap between the current share price and the 1p premium being paid by the investors. A gap which BT has highlighted himself! So if we're all thinking and discussing it, once the financing RNS actually lands to confirm it, then it will be a sentiment driver imo.
But each to their own and let's see what happens...
£4.6m in at 1p is a massive endorsement and they are ready to go on the ground
First Hillside hole sited!
We can’t wait to start drilling our first #gold exploration hole in Zimbabwe 🇿🇼
Matabeleland holds so much promise
We could keep the drill bit turning almost indefinitely with near-surface, untested targets that have bulk-mining potential
https://twitter.com/KavangoRes/status/1703784937004933376?t=RUvyxbHbjYdXlGFIOjsdXw&s=19
I do believe KAV will have its own drill Rig as well? Hard to imagine they won't be reporting some positive newsflow from Zim imo. As I said, looking very good for upside from here over the next 3-6 months. All imo
The Zim assets are small fry though and they're still only options over the claims.
They aren't going to make a significant company but they will allow the story to continue.
The KCB is where its at and even then we may simply have the wrong ground.
Could be very significant assets. Diamond rig has been mobilised.
Hoping to hear something on KCB as well. Dave Catterall is there I believe.
Stop fibbing tradedesk.
Their potential is for tens of thousands of ounces - the RNS is clear on this. Not worth relocating for.
They're targeting a minimum of 500,000oz per licence and they have dozens in pipeline. If it doesn't meet that threshold they discard that option and move to the one that does.
Also...
"Dave Catterall, Hillary & Brett are out in the #KCB at our Karakubis block with our team on the ground and new exploration manager Leon
IP surveys are complete. We’re interpreting the data & tying that in with what we’ve learned on the ground"
https://twitter.com/KavangoRes/status/1700467451190747343?t=2F6MaDGMm1iAeM6dEs4AeQ&s=19
"On declaration of a code-compliant (e.g. JORC or equivalent) gold resource containing in excess of 500,000 ounces of gold (inferred category or above) at the Nara Project"
"On declaring of a code-compliant (e.g. JORC or equivalent) gold resource in excess of 200,000 ounces of gold (inferred category or above) at the Leopard Project"
They mentioned a pipeline of a dozen or more options. So if each one is 500,000 ounces of gold. Thats a mid-tier in the making.
One of these is near Caledonia. £1.8bn mcap.
The bottom line is you are getting the possibility of gold finds in Zim, drilling of the best prospect at KCB, and a likely return to Ditau, with £6 million to attack them all with.
If we were trading at 2p fine, but how can anyone argue against the risk to reward proposition from 0.6p for all the above? No way do we trade here for much longer and on the financing RNS landing.
So I say keep accumulating whilst you can, because the positive tweets from KAV/BT all indicate that this new phase in KAV's journey is kickstarting into life. All imo and dyor
From Ben T in telegram
"I’ve just finished a long call with Dave
He’s agreed to do a Crux Investor interview with me. He’s heading to another project for a couple of weeks this weekend, so we will try to fit it in when we can
Dave will present our “leveling up” KCB strategy, talk about his experience in the region and what he likes about our ground"
Reading up on KCB is very interesting.
Make a discovery in the KCB and Kavango's share price will be 20-30 times higher in a flash imo.
With funding from Purebond to either drill or have the financial firepower to pretend we will drill and secure great terms on a JV is very exciting and seriously missed by the market.
Dave Catterall has made significant discoveries and he works mainly with Kavango (80%) and Cobre.
Directly responsible for Zone 5 underground discovery that is currently subject to a $2bn bidding war. Yes $2bn.
It is amazing that Kavango shares are trading at 0.6 range and should be well above 1p with the Purebond support.
When the whitewash is announced and that can be any day the shares will rise very quickly with very limited stock under 1p.
I sense we will have an update very soon with Dave being with the new exploration manager.
You can also see Sandfire and Cobre working together to fly over the land.
'Purebond deal is still going ahead on the same terms and the prospectus is currently being reviewed by the FCA' - market needs to wake up very quickly.
Strong BUY imo.
You seem to forget zone 5 has taken at least $500m to develop requiring a lot of debt and new equity so return on capital employed is significantly below the returns you state. The whitewash and £4.4m is massively dilutive and give Purebond free range to screw investors over in Q4 24 when the next raise at 0.2-0.5p is pushed through. Don’t say you weren’t warned.
The naysayers are kidding no one, just look at the shares being accumulated under the hood here.
The only warning I got today, and which speaks volumes, was not getting filled below 0.6p today. Even with breaking up the order. Will try again next week, but think the ship offering large stock in the 0.5s has sailed or is about to. All imo and GLA