Kavango Resources successfully raises US$1,7m

LONDON Stock Exchange-listed mineral exploration company, Kavango Resources, which has a presence in Matabeleland says it successfully raised US$1,7 million and is working on a second stage of financing.

Part of the money raised is expected to be channelled towards accelerating exploration programmes in Zimbabwe.

The second stage comprises the conditional issue of 460,000,000 new ordinary shares.

“This £6,0 million equity investment demonstrates significant confidence in the Company by Purebond, in what is a challenging market for junior exploration companies.

“If the second stage is approved this will enable the Company to accelerate its exploration programmes, in particular in Zimbabwe and at Karakubis on the Kalahari Copper Belt (KCB),” said the firm in its unaudited financial results for the six months ended 30 June 2023.

Kavango announced in June this year that it had signed an exclusive two-year option to acquire a producing gold exploration project in Matabeleland.

The Nara Project comprises 45 contiguous gold claims measuring 10 hectares each in size.

Kavango believes the Nara Project has potential to host a bulk mineable gold deposit.

It covers four historic mines with total recorded historic production from underground workings of 92,000oz gold averaging 9,76g/t from the early 1900s to the early 1960s. The mines also produced credits of tungsten and silver.

The mining entity is committing to inject US$1 million into exploration at the Nara Project over the two-year option period.

“The Nara Project area has supported historic high-grade underground mining and continuous surface small-scale mining and custom milling over the last 30 years. This has generated approximately 150,000 to 250,000 tonnes of tailings, which present a separate opportunity for potential near-term revenue generation,” reads part of the update.

Under the terms of the Option, Kavango has full access to the Nara Project area to conduct field due diligence, through a comprehensive exploration program.

“This programme is planned to include (but not be limited to) surface mapping and geochemistry, geophysics, surface drill testing, underground sampling, underground drill testing and assessing the commercial potential for processing the Tailings.

“Work has now commenced, and preparations are underway for a forthcoming drill programme.”

The mining industry is one of Zimbabwe’s economic mainstays with the sector presently contributing about 70 percent of the country’s foreign currency earnings.

Gold is Zimbabwe’s single largest export earner and the sector employs thousands of people involved in small-scale artisanal mining or employed by big mines.