London-listed Kavango Resources plc has raised approximately US$8.4 million through subscriptions in the UK and Zimbabwe to fund the expansion of its gold production operations, including the Hillside Gold Project, while pursuing the acquisition of the Nara Gold Project despite the seller’s recent default on completion terms.
The company announced that it raised US$4.7 million via the Victoria Falls Stock Exchange (VFEX) in Zimbabwe and £2.8 million (around US$3.7 million) in the UK at £0.01 per share, representing roughly a 33% premium to the mid-market price on 5 March 2026.
Chairman and interim CEO Peter Wynter Bee personally subscribed for 20 million shares in the UK portion of the fundraise. A total of 629,991,138 new ordinary shares will be issued under the combined VFEX and UK subscriptions.
Proceeds from the fundraising, together with the company’s existing cash resources, will provide approximately US$13.5 million for the expansion of the Hillside Gold Project, the proposed acquisition of the Nara Gold Project, any associated litigation costs, further exploration, and general working capital in Zimbabwe.
Kavango had previously announced that the seller of the Nara Gold Project, Simon John Bowman, had defaulted on completion terms, prompting the company to pursue legal remedies while continuing with its gold expansion plans.
Despite this setback, the company is pressing ahead with commissioning a 250-tonnes-per-day gold processing plant at Hillside in the first half of 2026, as well as establishing a 200tpd Carbon-in-Leach plant at the Bill’s Luck gold mine.
Underground and surface drilling is also planned to prove at least three years of mineable reserves.
The latest capital raise follows a series of successful fundraising rounds over the past year, including a £2.2 million raise in September 2025 and US$373,323 in December 2025.
Kavango, dual-listed on the London Stock Exchange (LSE:KAV) and the Victoria Falls Stock Exchange (VFEX:KAV.VX), stated that the Nara Project setback will not slow its Zimbabwe growth programme.
“Whilst the Company embarks on claims against Mr Bowman and his operating company Romjack Mining (Private) Limited (‘Romjack’), the Company will continue to increase gold production at the Hillside Gold Project and the farm-out of the Company’s portfolio located in the Kalahari Copper Belt,” the company stated.
