London-listed Kavango Resources has exercised its option to acquire 100% of Zimbabwe's Nara gold project.
Purebond's $5 million funding commitment will support the acquisition. The company has agreed to subscribe for new ordinary shares.
This investment is expected to form part of Kavango's broader capital raise ahead of its planned listing on the Victoria Falls Stock Exchange.
The company will release its technical and commercial assessment of Nara within the next month.
The acquisition gives Kavango full ownership of two major gold projects - Hillside and Nara - in Zimbabwe's prolific Filabusi greenstone belt.
Both assets benefit from perpetual mining leases contingent on production.
“Once we have completed the Nara acquisition, Kavango will own 100% of 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,” said company chief executive Ben Turney.
“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 [that] shareholders will enjoy good returns over the coming years.”
At Hillside, Kavango is advancing toward initial production of 250 tonnes per day within 12 months.
"Now that we are about to add Nara to our portfolio, we can pursue an even more ambitious plan,” he said.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
