Pambili Natural Resources Corporation has entered into a 12-month agreement with Long Strike Investments (Private) Limited to potentially acquire gold claims in Gwanda, Matabeleland South Province.
The Toronto Stock Exchange-listed company aims to acquire 21 gold claims in the Matabeleland region through this Option Agreement, which also includes plans to evaluate and develop the previously operational London Wall and Jessie mines.
Gold’s Growing Role in Zimbabwe
Gold remains Zimbabwe’s largest export earner, with the sector expected to generate $4 billion annually starting next year. This growth is driven by increased investments, reopening of dormant mines, and expansion projects in the gold mining sector.
Several mines have recently resumed operations in alignment with the government’s initiative to enhance gold production. Notable examples include Eureka Gold Mine in Guruve and Pickstone Peerless Mine in Chegutu, which is undergoing expansion. Shamva Gold Mine, a subsidiary of Kuvimba Mining House (KMH), is also ramping up production and plans to invest $150 million in processing facilities to transform it into a world-class operation.
Gold exports currently contribute approximately $3 billion annually to Zimbabwe’s economy. In 2023, gold production reached 30.1 tonnes, down from 35.3 tonnes in 2022. This year, the government aims to produce 35 tonnes, with 28.2 tonnes already delivered by October 2024, surpassing the 24.6 tonnes achieved during the same period last year.
Details of the Option Agreement
Pambili, which also operates Golden Valley Mine in Bulawayo, expressed excitement about the new agreement. Under the terms of the deal, the company has the right to acquire 21 claims spanning 173 hectares, along with pending applications for an additional 547.8 hectares. If the extensions are approved, they will also be included in the agreement.
During the 12-month agreement period, Pambili will conduct due diligence and exploration activities. Should the company decide to exercise its option, the total acquisition cost of $1 million will be settled through a mix of cash and shares. The transaction will require approval from the Toronto Venture Exchange, and any issued shares will be subject to a statutory hold period.