Kavango Resources plc has launched a new capital investment and financing programme with an initial £2 million convertible note to advance its Zimbabwe interests.
RIGS
The CLN with major shareholder Purebond Ltd will define mineable gold resources and acquire plant and equipment for larger scale production at the Hillside gold project.
Production at the new plant is due to start by the end of H1 2025, with Kavango aiming to identify 73,000 tonnes of mineable ore for two years’ continuous operation.
The cap-ex programme will consist of a series of “financing initiatives” through standard equity issues, with Purebond as cornerstone.
Kavango said it anticipated “accessing other pools of capital” to fund future growth.
The company also plans to acquire 45% of Zimbabwe drill partner Equity Drilling Zimbabwe (Pvt) Ltd for US$22,500.
In Q2, Kavango made an initial $240,000 loan to Equity Drilling with a proposed further $240,000 during Q3 2024 for start-up loans to purchase a diamond rig and a multipurpose rig.
Repayment will be through gross profit from drilling contracts.
“Kavango has identified a commercial opportunity to build a supply chain to service metals exploration companies in Zimbabwe,” added the company.
“There has been little modern exploration in Zimbabwe. As such, local service provision is limited.”
The company has also drafted a prospectus which has received preliminary approval from the Financial Conduct Authority. The final published prospectus is expected on listing on the Victoria Falls Stock Exchange.