Kavango Resources, a mineral exploration and mining group with assets in Zimbabwe and Botswana, has reported significant advancements in its Zimbabwean gold projects alongside successful capital raising efforts to support its 2025 exploration and development goals.
According to the company’s unaudited financial results for the six months ended 30 June 2025, their principal focus this year is the exploration and development of its gold assets in Zimbabwe, particularly the Hillside Gold Project and the Nara Project, as well as expanding early-stage gold production capacity.
In Botswana, Kavango continues exploration activities targeting the Kalahari Copper Belt.
On 29 August 2024, Kavango launched a capital expenditure programme aimed at funding value-generating projects, including resource definition, mining plan development, and acquisition of plant and equipment. This programme is primarily centered on Zimbabwe’s Hillside and Nara projects.
“The primary objective has been to define mineral resources, to develop mining plans and to acquire plant and equipment to expand production. Kavango’s proposed work programmes are focused principally on the Hillside Gold Project and Nara Project in Zimbabwe, In Botswana exploration has been focussed on the Kalahari Copper Belt Project.”
Shareholders granted Kavango authority in January 2025 to issue up to 1 billion ordinary shares to support a planned secondary listing on the Victoria Falls Stock Exchange (VFEX) and related capital raising.
This authority was renewed in May 2025. Through VFEX, Kavango raised approximately US$13.5 million, complemented by £1.5 million raised on the London Stock Exchange’s Main Market, providing working capital to advance exploration and development activities.
Additionally, in April 2025, the Company secured a US$5 million interest-free convertible loan note facility from a consortium of Zimbabwean pension funds, convertible into shares on terms linked to VFEX trading. The first tranche of shares was admitted to trading on 8 September 2025. Kavango appointed Corpserve Registrars as its local registrar and transfer agent, with options allowing Zimbabwean investors flexibility to hold shares locally or transfer them to the London market.
“On 1 July 2025, post the Half Year, the Company announced that Kavango has received a written commitment from Purebond Limited (the Company’s major shareholder) to subscribe for the equivalent of US$5 million worth of new ordinary shares in the Company at £0.01 per share, to fund the exercise of the Nara option.”
The Company implemented an employee share scheme to enable eligible employees of the Company and its subsidiaries, subject to certain conditions, to participate in the VFEX listing.
On its Zimbabwean operations, the company noted that they were concentrating in the mineral-rich Filabusi Archean Greenstone Belt in Matabeleland, near Bulawayo.
“Kavango is exploring for gold deposits that have the potential to be developed into commercial scale production quickly through modern mechanised mining and processing. The Company is targeting both underground and open-pit opportunities. The Company’s principal activities in Zimbabwe are located in the Filabusi Archean Greenstone Belt in Matabeleland, which form part of the central Zimbabwe craton.
“The Company has two main projects, the Hillside Gold Project comprising of 44 claims named Bills Luck, Britain, Nightshift and Steenbok, located southeast of Bulawayo, and the Nara Project comprising of 45 claims, covering four historic mines located to the south, near to Bulawayo. In Zimbabwe each gold claim is approximately 10 hectares.”
Kavango also revealed that they are pioneering the use of spiral decline mining in Zimbabwe, a technique commonly used in Western Australia but not widely adopted locally. This method is expected to unlock value in the country’s goldfields by providing easier underground access.
“Spiral decline mining is not currently widely adopted in Zimbabwe, despite the apparent geological similarities with Western Australia’s goldfields. Subject to drill results, Kavango believes that spiral decline mining has the potential to unlock significant value in Zimbabwe’s goldfields.”
The Company’s revealed that its long-term vision is to establish modern mechanised mining and processing operations capable of rapidly scaling gold production. The ongoing drilling and plant construction efforts are key steps toward realising this goal. —Herald