Chronicle Editor
KAVANGO Resources, the Southern Africa-focused metals exploration company, last week announced that it has started engaging advisors for a planned secondary listing on the Victoria Falls Stock Exchange.
This strategic move is poised to have significant implications for the company’s market presence and investment opportunities.
The decision to pursue a secondary listing on the Victoria Falls Stock Exchange underscores Kavango Resources’ commitment to expanding its reach and enhancing its accessibility to investors within the region.
By leveraging the resources and opportunities offered by the Victoria Falls Stock Exchange, the company aims to bolster its position on the market and capitalise on the potential for growth and development in the Southern African region.
The planned secondary listing on the Victoria Falls Stock Exchange is a testament to Kavango’s’ forward-looking approach and its dedication to leveraging emerging opportunities in the regional market.
As the company progresses with its strategic initiatives, stakeholders and investors are keenly observing the potential implications of this decision on the company’s market dynamics and future prospects.
The proposed listing will provide an opportunity for Zimbabwe-based investors to participate in Kavango’s exploration and mining development opportunities. This will provide the Company with access to an enlarged pool of capital and shareholder base and meet Kavango’s strategic objective of promoting strong local ownership in its projects.
Commenting on this development, Kavango chief executive officer, Mr Ben Turney said; “We set up Kavango Zimbabwe in July 2023. Over the past 12 months, we have made a strong commitment to invest heavily in Zimbabwe’s gold exploration and mining development sectors.
“A key part of our strategy is to promote local ownership in Kavango to share the rewards of future success. In keeping with the 2030 Vision to transform Zimbabwe into an upper middle-income economy, we are delighted to announce our listing on the Victoria Falls Stock Exchange.”
He said a thriving VFEX has the potential to attract significant foreign investment and Kavango looks forward to demonstrating that Zimbabwe is indeed open for business.
“We believe that Zimbabwe’s potential for hosting a multitude of large-scale, bulk minable gold deposits is immense. Kavango has made a very strong start in the short time we have been here, with our exploration and drilling already delivering positive results.
“We believe that the more success we have, the greater the chance that other international firms will follow our lead to invest in this great country,” said Mr Turney.
He revealed that Kavango has engaged Inter Horizon Advisory (Private) Limited as the lead financial advisor for the proposed transaction.
“Horizon Advisory’s mandate includes obtaining regulatory approvals and preparation of key documents including the proposed transaction pre-listing statement.
Kavango has also entered a further agreement with Nurture Investment Management Limited, a financial services firm providing asset management, private equity, investment advisory and corporate advisory services principally within Southern Africa,” said Mr Turney.
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.
It has a listed market capitalisation of US$ 1,26 billion with 15 listed securities as of 29 July 2024.
The VFEX is allowed to trade in United States dollars and other convertible currency. It was given sweeping exchange control provisions.
The Exchange includes several dual-listed securities listed on the London Stock Exchange, Johannesburg Stock Exchange, and Botswana Stock Exchange. Issuers of these securities all have operations in Zimbabwe.
Meanwhile, Kavango last week announced the appointment of Mr Thamsanqa Mpofu as the chairman of Kavango Zimbabwe (Private) Limited, the Company’s wholly-owned subsidiary in Zimbabwe.
Mr Mpofu is a seasoned senior executive offering extensive commercial and business management experience with a solid track record gained with local and international organisations in the Hospitality and Service Industries, Distribution, Manufacturing, FMCG, Mining, Banking and Education sectors.
He is a past board Chairman of ZB Financial Holdings Limited, a diversified Zimbabwe Stock Exchange-listed financial services company and was previously an Independent Non-Executive Director of Rio Zim (Pvt) Ltd, as well as an executive board member of Meikles Hospitality (Pvt) Limited). Mr Mpofu is currently the president of the Royal Harare Golf Club.
Commenting on the appointment, Kavango Resources chairman, Mr David Smith said; “We are delighted to welcome Tham as Chairman of the board of Kavango Zimbabwe. Our strategy in Zimbabwe is to build a substantial mining interest and for that we need strong executive leadership on the ground.
“Tham brings a wealth of commercial and board-level experience to our fledgling operations in Zimbabwe and has already made a significant contribution to helping us grow. Tham is a well-respected figure in Harare’s business circles and brings a high degree of stature to our company.”
Mr Smith said they were looking forward to working with Mr Mpofu as the company works on building a successful gold mining operation in Zimbabwe, not only for the benefit of the company’s shareholders but also for the benefit of the wider Zimbabwe economy and the local communities in which they operate.
Mr Mpofu said he was excited to be joining Kavango.
“It is a great honour and privilege to have been appointed Chairman of Kavango Resources Zimbabwe. I’m excited to be part of this vision, working with a dynamic team in developing new opportunities in mineral exploration and development.
“We at Kavango Zimbabwe are committed to contributing to national development goals and to uplifting communities,” he said.
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