Kavango Resources plc is in talks for a £6 million investment in the company and a potential new project for gold exploration in Zimbabwe.
INVESTOR
The investment by a single investor would be via a non-brokered direct subscription for a proposed price of 1p per share.
The transaction is subject to regulatory and shareholder approvals.
ZIMBABWE
The company, with its current assets in Botswana, is in “late-stage discussions” for a potential exclusive two-year option on a gold exploration and development project in Zimbabwe.
“The project area covers a number of contiguous gold claims over a 3.4km strike that has supported historic high-grade underground mining and more recent surface small-scale mining op,” added Kavango.
Modern methods or technology have never been used on the potential acquisition area.
Provisional terms of the option would allow the company to conduct “unrestricted” exploration and drilling before deciding whether to buy the project.
Kavango said it had completed “extensive preliminary due diligence” including two field visits before negotiating the option.