Kavango Resources plc expects to acquire “shortly” the Nara gold option in Zimbabwe, after signing a deed of variation to “address the mechanics of completion” for the purchase.
COMMITTED
At the start of March the company had faced seller’s default on the terms of the June 2023 call option, and was considering all solutions, including enforcement and compensation.
After agreeing to a third time extension with the seller, Kavango today announced it had transferred the balance of the payment into an escrow account.
The money will be transferred to the seller on completion of documentation.
Both parties are also discussing the possible sale and purchase of the operating company, Romjack Mining (Pvt) Ltd, to allow Kavango to continue “seamlessly” its work at Nara.
Nara comprises 45 contiguous claims, each of 10 hectares, and covers four historic mines and a tailings dump.
Since 2023, Kavango has completed drilling, ground work, technical and drone surveys, and investigated the potential for a large undergound mine at the site.
“We are excited to be embarking on the Nara project,” added chairman and interim chief executive officer Peter Wynter Bee.
“The company is committed to building upon the success of the Nara gold project, for the benefit of its shareholders and the local community.
“Kavango is taking this opportunity to evaluate the co-location of its exploration team to maximise operational efficiency and further strengthen the development of our projects in Zimbabwe.”
The company additionally owns the Hillside and Leopard gold projects in Zimbabwe, as well as a district-scale copper-silver exploration licence package in Botswana.