Online Reporter
Business Writer
KAVANGO Resources plc, a company listed on the London Stock Exchange, is progressing with its plans for a secondary listing on the Victoria Falls Stock Exchange (VFEX), enabling the trading of its ordinary shares in Zimbabwe.
The company’s Board approved the publication of a prospectus on June 26, 2025, outlining its strategy to raise up to US$13,5 million to support its gold exploration and mining projects in Zimbabwe.
According to the prospectus, Kavango has already secured commitments totalling US$8,5 million towards this target.
This includes a US$5 million convertible loan note facility issued to Comarton — a consortium of Zimbabwe-registered pension funds — and a US$3,5 million investment from its major shareholder, Purebond Limited. The remaining US$5 million will be offered to potential subscribers at the time of admission.
A key component of the listing process is the establishment of a Branch Register to facilitate direct trading of shares in Zimbabwe. The prospectus states that the company will “admit the Comarton Tranche 1 Shares and the Purebond Limited Shares, with a combined value of US$4 000 000, on introduction to the VFEX.”
This process involves shareholders first being registered on the UK register before being immediately transferred to the Zimbabwe branch register, where Corpserve Registrars will list the shares for trading on the VFEX.
Kavango’s strategy in Zimbabwe centres on identifying and consolidating small mining claims into “strategic size packages, covering potentially large ore-bodies.”
Management believes this approach presents a “unique opportunity,” noting that Zimbabwe’s goldfields “remain underexplored using modern exploration methods and technologies.”
The company highlights that the country’s greenstone belts have a long history of gold production, with historic high-grade orebodies often “surrounded by ‘halos’ of lower-grade mineralisation,” which have been “largely unexploited” to date.
Funds raised through the VFEX listing and a separate UK subscription will be allocated to several key areas. The prospectus details that a significant portion will be directed towards the Hillside Project in Matabeleland, with over US$2,2 million earmarked for mine construction and more than $6,8 million for plant construction, design and erection. Additionally, US$1,7 million has been budgeted for a mining production fleet, and US$1,43 million for working capital.
The prospectus also reveals that up to £8 million from the UK subscription will be used for “exploration and development work programmes,” including US$3 004 406 (£2 204 004) for exploration and development costs in Zimbabwe, such as drilling at the Hillside and/or Nara projects.
The benefits of the secondary listing are extensive, according to the prospectus. Kavango states that the listing will enable “Zimbabwean subscribers… to participate directly in any potential future success of Kavango’s business model.”
It is also expected to promote financial inclusivity, allowing both institutional and retail investors in Zimbabwe to participate. Another advantage is the ability to hold capital raised through the VFEX in “approved local or offshore accounts,” which will support the company’s gold exploration efforts.
Kavango’s principal activities include mineral exploration, mining, and development, primarily in Matabeleland. The company has three main projects: Hillside, Nara, and Leopard. At Hillside, small-scale operations are already generating revenue.
The prospectus states that Kavango intends to exercise its option to acquire the Nara Project, where it has already defined a JORC-code compliant resource on sand tailings.
Its subsidiary, Kavango Mining, is developing gold processing operations at Hillside to generate cash flow and gain operational experience in Zimbabwe, with the aim of significantly increasing gold production following the acquisition of capital equipment.
