Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that the Company has now converted its loan notes in Kavango Resources plc (“Kavango”)(LON:KAV) into new ordinary shares of 0.1 pence each (the “Kavango Shares”).
On 15 April 2020, Power Metal announced a Conditional Acquisition – Botswana, centred around a transaction to acquire a 51% ownership interest in the Ditau Camp project held outright by Kavango. This announcement may be viewed on the Company’s website through the following link:
Within the conditional acquisition agreement signed with Kavango, and in parallel, Power Metal subscribed £38,000 to a convertible loan note (“Kavango CLN”) as outlined in the announcement.
Power Metal has today served a notice to convert its entire £38,000 Kavango CLN into 4,750,000 new ordinary Kavango Shares at a conversion price of 0.80p and equating to 2.46% of Kavango’s issued share capital following this conversion.
Power Metal will under the terms of the Kavango CLN agreement be issued with warrants to subscribe for a further 4,750,000 new ordinary Kavango Shares at an exercise price of 1.0p and with a three year life to expiry to 21 April 2023, (the “Kavango Warrants”).
The Kavango Warrants contain an early exercise provision so that should Power Metal exercise any of its Kavango Warrants within one year of 15 April 2020, a replacement warrant will be issued to subscribe for a further new ordinary Kavango Share of 0.1p each at a price of 2.50p, also expiring three years from 21 April 2020.
DITAU CAMP DUE DILIGENCE
Power Metal and its technical team continues to work with Kavango in relation to the conditional acquisition of a 51% ownership interest in the Ditau Camp project in Botswana and further updates will follow as appropriate.
CHIEF EXECUTIVE OFFICER STATEMENT
Paul Johnson, Chief Executive Officer of Power Metal Resources commented: “The share price of Kavango has moved up a little since the April 2020 transaction which is positive, however we remain of the view that the market has yet to fully appreciate the size and potential of their projects in Botswana, which is a superb jurisdiction for resource exploration juniors.
We will continue to watch the wider Kavango story unfold whilst working on Ditau Camp project due diligence.”
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
17 July 2020