HARARE – Kavango Resources plc, a Southern Africa-focused metals exploration and gold production company listed on the London and Victoria Falls Stock Exchange has secured £2.2 million through a placing and direct subscription of 227.7 million new ordinary shares at 1 pence each.
The financing round saw the company’s largest shareholder, Purebond Limited, acquire 111.2 million shares, while Chairman and director Peter Wynter Bee subscribed for 10 million shares.
Chief Executive Officer Ben Turney said the capital raise comes at a critical stage in Kavango’s Zimbabwe operations.
“”We are now entering the crucial phase of Kavango’s plan in Zimbabwe. In the last two years, we’ve made four significant discoveries that we believe we can bring into commercial production,” he said.
The company’s immediate target is to establish and commission a 250 tonnes-per-day gold mining and processing plant at its Hillside Gold Project in the first half of 2026.
Turney noted that this pilot-scale production would demonstrate to the international market that Zimbabwe is a viable mining jurisdiction.
“Our immediate objective now is to build and commission 250tpd 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,” Ben Turney noted.
Proceeds from the placement will fund working capital, resource drilling, mine development, and the initiation of a 200tpd Carbon-In-Leach (CIL) processing plant at the Bill’s Luck gold mine.
Planned activities include surface and underground drilling to identify at least three years of mineable reserves.
Kavango confirmed that the new ordinary shares are expected to be admitted to the London Stock Exchange’s main market on 15 September 2025. Following admission, the company’s total issued share capital will rise to 3.61 billion shares.
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