Kavango Resources plc has secured a US$5 million convertible loan note for mine development, equipment and construction of a gold processing plant at Hillside in Matabeleland, Zimbabwe.
MINING
The interest-free CLN is with a consortium of Zimbabwe-registered pension funds, whose agent and administrator is Comarton Consultants (Private) Ltd.
The funds can be drawn in three tranches of $500,000, $1.5m and $3m over the next 12 months.
The CLN is convertible into Kavango shares of the US dollar equivalent of one pence per share.
Shares will be issued to consortium members and admitted to trading on the Victoria Falls Stock Exchange.
Hillside has two high-priority targets of Prospects 3 and 4 which, along with Prospect 2, are planned to begin production over the next 12 months.
Prospect 3 could potentially have a selective open-pit mining operation and higher-grade mechanised underground mine.
Prospect 4 could have a high-grade mechanised underground mining option.
Kavango, aiming to list this Summer on the Victoria Falls Stock Exchange, also holds an option until June 2025 to acquire the Nara gold project, also in Matabeleland.