Victoria Falls Stock Exchange (VFEX)-listed Kavango Resources Plc (Kavango) has taken a significant step toward consolidating its Zimbabwe gold ambitions after signing a Deed of Variation to advance the acquisition of the Nara Gold Project (Nara), as part of a broader US$13,5 million expansion drive.
The mining group, also listed on the London Stock Exchange (LSE), confirmed that it has now agreed to revised terms with Nara seller – Simon John Bowman, through his company Romjack Mining (Private) Limited (Romjack) – to facilitate completion of the transaction, which covers 45 gold claims in Zimbabwe.
“Kavango and the Seller have signed a Deed of Variation… to address the mechanics of completion, which we anticipate occurring shortly,” Kavango said in a statement.
As part of the process, Kavango has transferred the outstanding purchase consideration into an escrow account, to be released once final documentation is concluded.
The parties are also in discussions over acquiring Romjack, the operating company, to ensure continuity of operations at Nara.
The latest development comes as Kavango is mobilizing up to US$13,5 million through a mix of investor subscriptions, internal resources and committed funding to support its Zimbabwe growth pipeline.
The company recently raised about US$8,4 million from investors in the United Kingdom and Zimbabwe, with subscriptions on both the LSE and VFEX priced at the equivalent of £0,01 per share.
The capital raise, which will see more than 629 million new shares issued, is expected to fund expansion of gold production, exploration and working capital.
Management says the funding underscores growing investor confidence in Zimbabwe’s gold sector, where Kavango is already advancing several projects.
At its Hillside Gold Project in Matabeleland South, the group recently outlined an initial mineral resource estimate of 33 900 ounces of gold at Bill’s Luck Mine.
The project is central to Kavango’s plans to ramp up output, supported by a soon-to-be commissioned carbon-in-pulp processing plant.
Commenting on the Nara acquisition, Kavango interim chief executive Peter Wynter Bee said the project would play a key role in the group’s long-term strategy.
“We are excited to be embarking on the Nara project. The Company is committed to building upon the success of the Nara Gold Project, for the benefit of its shareholders and the local community,” he said.
He added that Kavango is also evaluating operational synergies.
“Kavango is taking this opportunity to evaluate the co-location of its exploration team to maximise operational efficiency and further strengthen the development of our projects in Zimbabwe.” – TML