Kavango Resources plc has exercised its option, signed in June 2023, to acquire 100% of the Nara gold project in Matabeleland, Zimbabwe.
LISTING
The project comprises 45 contiguous gold claims, each of 10 hectares, and covers four historic mines as well as a tailings dump.
Over two years, the company has conducted drilling programmes, ground work, technical surveys, drone surveys and investigated the potential for a large undergound mine at the site
Kavango said it intended to release its technical and commercial appraisal of Nara in the coming month.
The company’s majority shareholder Purebond Ltd has agreed to subscribe for new ordinary shares equivalent to US$5 million, at one pence per share, for the acquisition.
Purebond currently owns 2,140,222,639 ordinary shares in the company, representing 70.2% of its issued ordinary share capital.
The subscription is also expected to form part of the fundraise for Kavango’s forthcoming listing on the Victoria Falls Stock Exchange.
Chief executive Ben Turney added that ownership of Nara along with its existing gold project of Hillside gave the company two “significant” gold mining projects in the Filabusi Greenstone Belt.
“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.
“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.”