KAVANGO Resources has assembled approximately US$13,5 million to finance expansion projects in Zimbabwe after raising fresh capital from investors and combining it with existing and committed funding.
The mining group, which is listed in London and on the Victoria Falls Stock Exchange (VFEX), recently secured about US$8,4 million through investor subscriptions in both Zimbabwe and the United Kingdom.
According to the company, investors participating through the London market and the VFEX subscribed for shares priced at the equivalent of £0,01 each.
The fundraising generated roughly US$4,7 million from the VFEX portion of the placement and £2,8 million from investors on the London market.
In a statement, Kavango said the funds raised, together with cash already on hand and other committed financing, would support several growth initiatives within its Zimbabwean portfolio.
“Proceeds from the VFEX and UK subscriptions, together with the company’s existing cash resources and committed funds, total approximately US$13,5 million,” the company said.
The funds will be directed towards expanding production at the Hillside gold project, advancing the planned acquisition of the Nara project, covering related legal costs and supporting further exploration and working capital requirements in Zimbabwe.
As part of the capital raise, the company plans to issue 629 991 138 new ordinary shares under the combined subscriptions.
The VFEX-linked shares will initially be admitted for trading on the main market of the London Stock Exchange before being transferred to Zimbabwe through a branch register arrangement to allow direct trading on the VFEX.
Trading in both the UK and VFEX shares is expected to begin once the listing process is completed, which the company anticipates will occur around March 16, 2026.
Kavango said the fundraising highlights growing international interest in Zimbabwe’s gold mining sector.
The company is currently advancing several exploration and development programmes across its assets.
At the Hillside Gold Project in Matabeleland South, Kavango recently reported an initial mineral resource estimate of 33 900 ounces of gold at an average grade of 2,68 grammes per tonne at Bill’s Luck Gold Mine. Based on current gold prices, the resource has an estimated value of about US$179 million.
Bill’s Luck is one of four prospects at the Hillside project, alongside Britain, Nightshift and Steenbok.
The mine, which previously operated historically, is being redeveloped and re-equipped by the company and is expected to feed a new 50-tonnes-per-day carbon-in-pulp processing plant that is nearing commissioning.
Kavango interim chief executive Peter Wynter Bee said the resource estimate would support longer-term planning for production growth.
“The delineation of this resource allows us to begin detailed mine planning and optimise extraction as we work to unlock additional value. With the commissioning of our CIP plant approaching, we are well positioned to increase output and benefit from the current strong gold price environment,” he said.
Meanwhile, the company is pursuing legal proceedings linked to its planned acquisition of the Nara Gold Project after the seller allegedly failed to complete the transaction under the agreed terms.
Kavango had exercised an option in June 2025 to acquire the project, which comprises 45 gold claims, under a call option agreement. The transaction had been expected to conclude by February 27, 2026.