Kavango secures US$13m for mining projects in Zim . . . targets several high-grade gold mines in the Matabeleland region

Business Reporter

KAVANGO Resources, a London Stock Exchange-listed company with gold mining projects in Zimbabwe, has secured £10 million (US$13 million), as part of the firm’s strategic financing package.

The funding demonstrates strong backing from major stakeholders.

Operating through its Zimbabwean subsidiary, Kavango Zimbabwe, established in July 2023, the company is targeting several high-grade gold mines in the Matabeleland region, with a focus on economic bulk mining.

Kavango chief executive officer Ben Turney confirmed substantial funding had been secured to launch the Hillside Gold Project in 2025.

“We have completed the first phase of exploration and believe we have identified two potential gold mines. One of these is an underground, high-grade opportunity that we hope to mine using a spiral decline.

“Spiral declines are a modern form of mining, developed in Australia over the last 25 years. They enable bulk mining of underground, lode gold systems. This is a relatively new approach in Zimbabwe, which we hope to pioneer.

“We have built a very strong exploration and mining team in Bulawayo. We look forward to what they can achieve next year,” he said.

Kavango also aims to use a prospectus to list its shares on the Victoria Falls Stock Exchange, signalling its intent to broaden market exposure.

Earlier this month, Kavango announced the discovery of substantial tungsten and other strategic elements at its Hillside Project. These findings stem from the initial phase of Inductively Coupled Plasma (ICP) testing on core samples from the site.

With its newly secured finance package, Kavango moves confidently into 2025 as it aims to bring modern mining practices to its Hillside Gold Project. If it is successful, this promises to be a pioneering project in the development of Zimbabwe’s extremely large goldfields.

Southern African-focused metals and exploration firm Kavango Resources Plc said its entry into Zimbabwe’s mining industry was a significant milestone that presented opportunities to invest in the lucrative local gold sector.

Gold is Zimbabwe’s single largest export earner while the mining industry accounts for more than 75 percent of the country’s annual shipments.

In 2023, the Southern African nation produced 30,1 tonnes of the yellow metal while the Government has set a target of 40 tonnes for 2024.

Gold exports are expected to generate US$4 billion annually for Zimbabwe from next year from around US$3 billion currently.

Kavango Resources, which entered the country’s mining space last year, also has investments in various minerals, including copper in neighbouring Botswana.

During the year Kavango acquired options over three projects in Zimbabwe, where we commenced work at a rapid pace.

The greenstone belts in Zimbabwe host prospective rocks for bulk-mineable gold deposits, based on Kavango’s internal review and analysis.

Many of the belts share notable similarities with some of Australia’s most prolific gold-producing regions.

Kavango said Zimbabwe was a high-potential destination to invest in, and in June 2023 the company entered into a two-year option agreement for the Nara project, covering 45 gold claims in western Zimbabwe (Matabeleland region).

In May this year, Kavango, which is listed on the London Stock Exchange was reported to be in the market to raise £3,08 million (US$3,86 million) from 257,11 million new ordinary shares issued at 1,2 pence per share through an underwritten accelerated bookbuild.

The capital raise was meant to fund the company’s Zimbabwe and Botswana projects.

The company also entered into a strategic partnership with Pambili Natural Resources Corporation, which is listed on the Toronto Stock Exchange in Canada, to revive operations at Golden Valley Mine near Bulawayo.

In November last year, Pambili entered into a share purchase agreement to acquire the Golden Valley project, a gold-producing mine from White Satin Investments (Private) Limited, further signifying the firm’s growth.

Meanwhile, Kavango plans to list on the United States dollar-denominated bourse, the Victoria Falls Stock Exchange (VFEX), a move expected to allow Zimbabwe-based investors to participate in the firm’s exploration and mining development opportunities.

In return, this would provide the company with access to an enlarged pool of capital and shareholder base and meet its strategic objectives of fostering strong local ownership in its projects.