Online Reporter
Business Reporter
London Stock Exchange-listed Kavango Resources plc, a metals exploration and gold production company, has raised £2,2 million (roughly US$2,97 million) through a new share issue to accelerate its gold mining development plans in Zimbabwe, the company has announced.
The capital was raised by issuing 227 751 720 new ordinary shares for 1 pence per share.
A significant portion of the money came from the company’s largest shareholder, Purebond Limited, which subscribed for over 111 million shares, the company said in a statement. Company chairman and director Mr Peter Wynter Bee also participated, subscribing for 10 million shares.
Kavango chief executive Mr Ben Turney said the company was now in a “crucial phase” of its Zimbabwe strategy.
The immediate goal is to build and commission a 250 tonnes per day (tpd) gold processing plant at the Hillside Gold Project, in the Filabusi Greenstone Belt, in the first half of next year.
The company plans to use the funds to conduct a combination of surface and underground drilling to define a minimum of three years of mineable reserves at the Bill’s Luck mine, also in Filabusi. This will include both diamond and reverse circulation drilling.
The funds will also be deployed for the construction of a carbon-in-leach processing plant at the mine.
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Kavango will also use the funds to support other exploration and mine development works, contributing to the company’s overall working capital.
Mr Turney highlighted that the pilot-scale production will aim to prove to the international market that Zimbabwe is a “mining-friendly jurisdiction that is open for business.”
The new shares are expected to be admitted for trading on the London Stock Exchange on or around September 15, 2025.
“We are now entering the crucial phase of Kavango’s plan in Zimbabwe,” he said.
“In the last two years, we have made four significant discoveries that we believe we can bring into commercial production.
“Our immediate objective now is to build and commission 250 tonnes per day of gold mining and processing capacity at our Hillside Gold Project in the first half of next year. This pilot-scale production will allow us to clearly and decisively prove to the international market that Zimbabwe is a mining-friendly jurisdiction that is open for business.
“We intend to use the funds raised today to accelerate our progress towards that goal. I would like to sincerely thank our existing and new shareholders for joining us in pursuit of this transformative vision.”
Following the share issue, Kavango’s total issued share capital will be 3 609 823 314 ordinary shares.
Kavango listed on the Victoria Falls Stock Exchange last Friday by way of introduction and the trading of its securities commenced on Monday.
Kavango retains its primary listing on the London Stock Exchange, with the VFEX serving as its secondary listing to broaden investor access
Kavango successfully raised US$4,5 million raised during the subscription period.
