BRITISH miner, Kavango Resources Plc, is set to raise £6 566 200 (US$8 249 941,49), meant for developing gold mines at its Hillside Project and for further exploration in Zimbabwe and Botswana.
Kavango has three gold mining projects in Zimbabwe — the Nara Gold Project, Leopard Project and Hillside Project.
The Nara Gold Project covers four historic mines near Bulawayo with a total recorded production of more than 90 000 ounces (oz), while the Leopard Project comprises two groups of claims that have produced 2 000oz.
The Hillside Project has 44 gold claims covering 503 hectares within trucking distance of the Nara Project.
“Kavango Resources Plc, the Southern Africa-focused metals exploration company, is pleased to announce a strategic financing of £6 566 200 at 0,7 pence per share ,” Kavango said, in a statement last week.
“The strategic financing will be subject to the approval of a prospectus by the Financial Conduct Authority and shareholder approval at a general meeting. The company will call the general meeting shortly.”
The firm said the strategic financing will be carried out by the conditional issue of 938 028 569 new ordinary shares of £0,001 each in the capital of Kavango at a price per share of 0,7 pence.
Kavango is listed on the London Stock Exchange and has a market capitalisation of nearly £10 million (US$12,56 million).
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“Funds from the strategic financing will contribute to the company’s plans for developing gold mines in Zimbabwe at the Hillside Project, further exploration in Zimbabwe and Botswana and for general working capital purposes,” Kavango said.
Kavango has three projects in Botswana.
These are the Kalahari Copper Belt Project (copper), Kalahari Suture Zone Project (copper-nickel-platinum) and Ditau Project (gold).
Part of the strategic financing will be used for drilling activities at these sites.
“We have recently announced Kavango’s plans at Prospects 3 and 4 at the Hillside Gold Project in Zimbabwe. If the next phases of resource and exploration drilling meet our expectations, we will start work on developing two projects that we hope to start mining by the end of 2025,” Kavango chief executive officer Ben Turney said.
“Over recent months, we have been readying the company for this next phase of growth. Through our subsidiary Kavango Mining, we have recruited a dedicated mining team and put in place processes ready to start operations. We have hired an Australian mining engineer, who is experienced in using modern mechanised methods and lode gold systems.
“He is overseeing our planned strategy to move into mine development. Finally, we have engaged a gold processing plant manufacturer in South Africa to conduct initial metallurgical test work on ore samples taken from our project areas.”
Kavango is targeting several historic high-grade gold mines in the Matabeleland region with a focus on economic bulk mining.
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 testing on core samples from the site.
