LONDON Stock Exchange (LSE) and Victoria Falls Stock Exchange (VFEX)-listed Kavango Resources has raised £2.2 million through the issuance of more than 227.7 million new ordinary shares at a price of 1pence per share via a direct subscription and placing.
Kavango, which maintains its primary listing on the LSE, recently chose the VFEX as its secondary listing to expand investor access.
As part of their listing in the VFEX, the company successfully raised US$4.5 million, strengthening its financial capacity to advance its exploration and development projects.
In the latest development, Kavango’s major shareholder, Purebond, has directly subscribed for over 111.2 million new ordinary shares at the subscription price.
Kavango chairperson and company director Peter Wynter Bee has also subscribed for ten million new ordinary shares at the subscription price.
“We are now entering the crucial phase of Kavango’s plan in Zimbabwe. In the last two years, we’ve made four significant discoveries that we believe we can bring into commercial production.
“Our immediate objective now is to build and commission 250 t/d of gold mining and processing capacity at our Hillside gold project in the first half of next year. This pilot-scale production will allow us to . . . prove to the international market that Zimbabwe is a mining-friendly jurisdiction that is open for business.
“We intend to use the funds raised today to accelerate our progress towards that goal,” said Kavango CEO Ben Turney.
Funds from the placing and subscription will contribute to the company’s general working capital and support further exploration and mine development.
This includes resource and grade control drilling at Kavango’s Bill’s Luck gold mine in Zimbabwe, as well as a combination of surface diamond and reverse circulation drilling, plus underground diamond drilling to identify three years’ worth of mineable reserves.
Additionally, the funds will help finance the initiation of construction of a 200 t/d carbon-in-leach processing plant at Bill’s Luck, alongside continued surface and underground exploration and resource drilling.- Herald
