Kavango Resources Plc, a metals and exploration company focused on Southern Africa, announced that its entry into Zimbabwe’s mining industry marks a significant milestone, offering opportunities to invest in the profitable local gold sector.
Gold is Zimbabwe’s top export, with the mining sector contributing over 75% of the country’s annual exports. In 2023, Zimbabwe produced 30.1 tonnes of gold, with the government setting a target of 40 tonnes for 2024. Gold exports are projected to generate $4 billion annually for Zimbabwe from next year, up from the current $3 billion.
Kavango Resources, which entered Zimbabwe’s mining industry last year, also holds investments in various minerals, including copper in neighboring Botswana. The company acquired options on three projects in Zimbabwe and began operations swiftly.
According to Kavango’s internal review, the greenstone belts in Zimbabwe are highly prospective for bulk-mineable gold deposits, sharing similarities with some of Australia’s most prolific gold-producing regions.
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Recognizing this potential, Kavango entered into a two-year option agreement in June 2023 for the Nara project, which includes 45 gold claims in western Zimbabwe’s Matabeleland region.
In May 2023, Kavango, listed on the London Stock Exchange, sought to raise £3.08 million ($3.86 million) through an underwritten accelerated bookbuild, issuing 257.11 million new ordinary shares at 1.2 pence each. The funds were intended to support the company’s projects in Zimbabwe and Botswana.
Kavango has also formed a strategic partnership with Pambili Natural Resources Corporation, listed on the Toronto Stock Exchange, to revive operations at the Golden Valley Mine near Bulawayo.
In November 2022, Pambili signed a share purchase agreement to acquire the Golden Valley project, a gold-producing mine from White Satin Investments (Private) Limited, further expanding Kavango’s growth.
Additionally, Kavango plans to list on the Victoria Falls Stock Exchange (VFEX), a US dollar-denominated bourse, which will allow Zimbabwe-based investors to participate in its exploration and mining development ventures.
This listing is expected to provide the company with a larger pool of capital, a broader shareholder base, and align with its strategic goals of fostering strong local ownership in its projects.
The VFEX, established in 2020, aims to drive the development of the International Financial Services Centre in Zimbabwe and operates in a Special Economic Zone in Victoria Falls.
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