Kavango Resources plc expects to acquire 15% of gold explorer Pambili Natural Resources Corporation by converting its $250,000 convertible loan and a $75,000 loan premium into shares.
GOLDEN VALLEY
In 2022 Pambili, previously solely focused on oil and gas, completed an earn-in investment of up to 75% of Golden Valley gold mine in Matabeleland, southern Zimbabwe.
Since March, Kavango has worked with the Canadian company on a corporate restructure and acquisition of the project which completed earlier in November, and has now given notice to convert the loans.
Golden Valley includes a “functional gold processing plant and stamp mill, two historic shafts that present prospective exploration targets and near surface exploration potential to target a possible larger-scale deposit”.
Kavango said that some small-scale gold production continued at the mine by way of toll-milling third-party ore through an on-site stamp mill.
Pambili plans to explore the underground potential first and restart mining in Q1 2024.
The processing plant is ready to receive ore and plans are near completion for underground exploration drilling.
Pambili will at the same time conduct surface exploration at Golden Valley using Kavango’s field team.
Kavango’s strategic investment increases its exposure to a third greenstone belt in addition to its projects of Hillside, Nara and Leopard.
Both companies will share operational, exploration and administrative functions to help with costs and efficiencies.
Kavango chief executive officer Ben Turney added that there was “immense opportunity” in Matabeleland gold fields.
“Kavango has identified a strong pipeline of opportunities across the region. Our investment in Pambili creates for us an additional outlet for some of these.
“We are very pleased to partner with Pambili, as [chief executive] Jon Harris and his team recommence mining at Golden Valley.
“This is an exciting project that Kavango knows well. It combines excellent potential for near-term revenue generation with untested surface exploration upside.”