Kavango Resources has successfully raised £2.2 million ($2.96 million) through a placing and direct subscription of new ordinary shares, priced at 1p per share.
The proceeds will accelerate the development of the company’s gold assets in Zimbabwe.
A significant portion of the funds is allocated to constructing a 250-tonne-per-day (t/d) processing plant at the Hillside project, slated for commissioning in the first half of 2026.
Additionally, the capital will fund extensive exploration and resource drilling at Bill’s Luck gold mine, aiming to define a three-year mineable reserve and initiate construction of a 200 t/d processing plant.
Major shareholder Purebond subscribed for over 111.2 million shares, demonstrating strong insider confidence.
Chairman Peter Wynter Bee also participated, acquiring ten million shares.
“We are now entering the crucial phase of Kavango’s plan in Zimbabwe. In the last two years, we’ve made four significant discoveries that we believe we can bring into commercial production,” said Kavango chief executive Ben Turney.
“Our immediate objective now is to build and commission 250 t/d of gold mining and processing capacity at our Hillside gold project in the first half of next year.”
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
