Kavango Resources secures £1.5 million via loan notes

Published 19/12/2024, 19:34
Kavango Resources secures £1.5 million via loan notes

LONDON - Kavango Resources PLC (LSE:KAV), a metals exploration company focused on Southern Africa, has raised £1,511,668 through the issuance of two Convertible Loan Notes (CLNs). The Deputy Chairman, Peter Wynter Bee, has provided one of the CLNs with a £1,000,000 advance, while Purebond, a major shareholder, has contributed £511,668 for the second CLN.

The CLNs issued carry a 10% annual interest rate and have a one-year term. They are set to be converted into ordinary shares following the publication of a prospectus, currently under review by the Financial Conduct Authority (FCA). Kavango has disclosed its intention to convert the CLNs’ principal into 215,952,571 new ordinary shares at 0.7p each upon the prospectus’s release as part of the Strategic Financing initiative announced today.

In addition to these new CLNs, Kavango will also convert two previously issued Convertible Loan Notes from 29 August 2024 and 16 September 2024, which total £2,200,000 in principal. These Outstanding CLNs will be converted into 314,285,714 new ordinary shares at the same 0.7p per share rate, aligned with the terms of the new CLNs.

The company plans to utilize the prospectus as a listing document for its ordinary shares on the Victoria Falls Stock Exchange, as previously announced on 02 August 2024. Following the conversion of both the CLNs and the Outstanding CLNs, the total value of the Strategic Financing has increased to £10,277,868.

This funding initiative is part of Kavango’s broader strategy to advance its exploration projects in Southern Africa. The information presented in this article is based on a press release statement issued by Kavango Resources PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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