By ETimes
KAVANGO Resources, the Southern Africa-focused gold exploration and development company, has exercised its option to acquire 100% ownership of the Nara Gold Project in Zimbabwe.
The acquisition is backed by a US$5 million equity subscription commitment from Purebond Limited, as the company gears up for a listing on the Victoria Falls Stock Exchange (VFEX).
The funding, set at 1p per share, will support the acquisition and provide working capital to advance exploration and development activities at Nara.
“Once we have completed the Nara acquisition, Kavango will own 100% of two significant gold mining projects in the Filabusi Greenstone Belt,” said Ben Turney, chief executive officer of Kavango Resources.
“Both projects are fully permitted mining leases that are held in perpetuity by production. This puts Kavango in a strong position to generate free cash flow over the long term.”
Kavango plans to publish a technical and commercial appraisal of Nara in the coming month.
The company is targeting a large-scale, mechanisable underground gold deposit, with exploration efforts focused on the historic N1 mine area, where expansion of artisanal workings is under evaluation.
Turney emphasized the company’s prudent financial strategy, highlighting its debt-free status: “Thanks to Purebond’s support, we have built our business through equity investment and have no debt. Our debt-to-equity ratio is zero and our hope is shareholders will enjoy good returns over the coming years.”
The Nara Gold Project complements Kavango’s existing Hillside Gold Project, also located in the Filabusi Greenstone Belt, where the company is working toward a production target of 250 tonnes per day within the next 12 months.
“With Nara about to join our portfolio, we can pursue an even more ambitious plan,” Turney added.
“We look forward to providing further updates in the next month.”
Kavango’s dual listing strategy on the LSE and upcoming VFEX debut is intended to enhance regional investor access and support its long-term growth across Southern Africa.
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