mbulelo smpofu
Business Reporter
KAVANGO Resources, which has a presence in Matabeleland has announced that it has raised a strategic financing of US$13 million to support its plans to develop gold mines in the country.
Additionally, the funds will be used for local exploration, initiatives in Botswana and general working capital needs.
The mining house said the strategic financing will be subject to the approval of a prospectus by the Financial Conduct Authority and shareholder approval at a general meeting to be called soon.
In an update statement, Kavango Resources chief executive officer, Mr Ben Turney said the financing is in place to support some of their main projects in 2025.
“We’ve recently announced Kavango’s plans at Prospects three and four 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,” said Mr Turney.
He said in recent months, the firm has been preparing for this next growth phase.
“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,” said Mr Turney.
Kavango Resources entered the country’s mining space last year, has investments in various minerals, including copper in neighbouring Botswana.
Mr Turney said the development was a great achievement for Zimbabwe and Kavango.
“In extremely difficult market conditions worldwide, this is a great achievement for Zimbabwe and Kavango. There are only a handful of companies globally in the metals exploration sector that have the strong financial backing we do.
“Our mission in Zimbabwe is to bring modern mechanised mining methods to the country’s rich goldfields. In our first full year, we’ve proven what is possible using the latest exploration techniques and technologies. We’ve made a number of exciting discoveries. Zimbabwe’s goldfields are almost identical to those of Western Australia. There is much we can all learn from that country’s rise to becoming the second-largest gold producer in the world,” said the Kavango CEO.
He revealed that if they were successful in their operations, their business model could be used by others across the country.
“Now that we have the funds in place, we are in the strongest position to deliver our vision,” he said.
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.
This would give the company access to an enlarged pool of capital and shareholder base and meet its strategic objectives of fostering strong local ownership in its projects.
The VFex was established in 2020 to spearhead the development of the International Financial Services Centre in Zimbabwe and is operating in a Special Economic Zone in Victoria Falls.
