A significant ray of sunlight in an undeniably challenging market

Let’s not sugar-coat it…
Being an explorer in these current market conditions is tough.
Seeking strategic investment is even tougher.
Most investors are on the defensive. People are reigning things in, cutting back, looking to lay-low until greater confidence returns.
And it’s been like that for a while now.
I understand it’s one of the reasons some people have been skeptical about what we’re doing here at Kavango, about my plans for the company.
Investors are weary. I get that.
Even though the opportunities we’re exploring across our three main projects look good on paper (and on the ground), the fact the wider market is so fragile worries people.
I’ve never ignored this. I knew it only too well.
I still do.
But from the moment I became CEO of Kavango, I’ve been confident in what we’re doing as a company.
The KSZ…the KCB…Ditau… make no mistake: these are highly promising exploration opportunities.
It’s why, for the last year at least, I’ve been talking to as many people as possible about what we’re doing. I’ve tried to be open, transparent, and above all...realistic.
I think that’s what investors want.
And I believe it’s the reason why I’m able to write to you today to celebrate the fact that we last week raised £3.5 million to help fund our continuing exploration.
Frankly, I believe it could be enough to see us through to discovery.
Of course, I’m not saying discovery is guaranteed. That’s impossible to predict, even with the extensive work we’re doing.
But I believe that if the metal is there in the ground at any of our projects…
We stand a very good chance of finding it.
And now I believe we have the financing necessary to do so.
Perhaps more important, though, is the fact that the vast majority of this raise comes from two key strategic investors.
Right now, I can’t share the details of one of those investors, simply because the deal is waiting to complete. Once the TR-1 is done in mid-November, I’ll be the first to update you.
But as we announced via RNS last week, our deal with Arigo Investments Africa is now complete, and we couldn’t be happier to have the team on board.
Being based in Southern Africa, Arigo's experience and contacts will be a great support to us.
Their investment in us is reassuring too. Presented with all we’ve done and all that we plan to do, Arigo’s team can clearly see the opportunity for itself.
As I say, this is not a friendly market.
It’s a tough time to be raising…
And it makes me even prouder that a company like Arigo is confident enough to invest such a significant amount.
Of course, there is still a lot of work to be done. I understand that, and the whole team here at Kavango understands that too.
But our excitement in these opportunities…in what’s happening at KSZ…at the KCB…and at Ditau… only continues to grow.
If you’ve got questions about any of our projects, remember you can always reply to this email and ask me, and I’ll look to cover any of the topics in a future edition of Boots on the Ground.
Indeed, either way, I’ll keep you updated on what’s happening, and as more data comes to light, what our next steps will be.
But right now, in a market that for many is extremely challenging, I think it’s important to take a moment to reflect on what our latest fundraise means.
It’s a significant vote of confidence in what we’re doing here at Kavango and, we believe, gives us clear runway until the end of 2023. With such a strong outlook for base metals, it is surely a matter of time before the mining and exploration sector rallies.
With all the operational progress we have made over the course of 2022, and now that we have emphatically addressed any questions over financing, it is my firm belief that Kavango will be one of the leaders when the market recovers.