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.
Additionally, the agreement includes a “Right to Mine” clause, allowing Pambili to begin operations at London Wall Mine. Initial activities will focus on processing tailings and sands, with underground mining to follow. The company expects to bring at least one mine into production during the agreement period.
Strategic Vision and Plans
Pambili CEO Jon Harris described the deal as a significant milestone for the company’s expansion in Zimbabwe. He noted that acquiring the London Wall group of mines offers near-term cash flow potential while allowing the company to thoroughly assess the claims before deciding on a full acquisition.
“This opportunity is a major step forward for Pambili. It positions us to achieve our goal of becoming a key gold producer in Zimbabwe,” Harris said.
In the immediate term, Pambili plans to rehabilitate static leach tanks at London Wall Mine to process tailings and generate revenue. Simultaneously, the company will evaluate underground operations at the East Shaft to determine the feasibility of resuming production.
The East Shaft, last operational two years ago, is believed to be in good condition. Long Strike has already purchased a 20-tonne-per-day crushing and milling plant, which will be installed near the site.
“This project represents a tremendous opportunity to confirm the potential of the mines and deliver value for both the company and its stakeholders,” Harris added.
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