Pambili and Kavango Resources Forge Strategic Alliance to Unlock Zimbabwe’s Gold Riches
Toronto Stock Exchange-listed Pambili Natural Resources Corporation and London Stock Exchange-listed Kavango Resources Plc have joined forces to unlock Zimbabwe’s gold potential. This strategic partnership fuels exploration and development efforts at the Golden Valley Mine, aiming to revive production and propel Zimbabwe’s modern mining sector.
By Patricia Rwafa
Pambili Natural Resources Corporation (PNN) confirmed Kavango Resources Plc’s conversion of their US$250,000 loan into company shares, following approval by the TSX Venture Exchange.
The TSX-V has determined that the previously announced Premium of US$75,000 exceeds its guidelines. Kavango has therefore agreed to reduce the Premium to US$60,000, the maximum allowable amount, resulting in an effective interest rate of 24% on the loan.
After giving effect to the exchange rate, the Loan and Premium (C$423,770) will be settled through the issuance of 7,704,910 Shares at C$0.055 per Share (“Settlement”). After giving effect to the Settlement and following the acquisition of the Golden Valley Mine (announced on June 20, 2024), Kavango will own approximately 14.0% of the enlarged share capital of Pambili and become an insider of the Corporation.
Kavango is a mineral exploration company listed on the London Stock Exchange (LSE: KAV) with projects in Zimbabwe and Botswana.
According to Pambili CEO Jon Harris:
“Pambili is in a strong position. We have taken positive steps forward in exploring Golden Valley’s near- and longer-term gold potential. Following the TSXV’s recent approval of our acquisition of the project, we’re ready to push on with preparations for our planned underground drilling program.
The funds provided by Kavango will be key in advancing this pivotal work, and we welcome them as a strategic investor. Our goal is to identify an initial source of ore to bring the mine back into full production. This stands to provide us with a source of revenue we can invest directly into operation expansion and investigating Zimbabwe’s modern production potential.”
In addition to what Pambili CEO Jon Harris said, Kavango CEO Ben Turney commented:
“Kavango and Pambili share an appreciation of the immense, underexplored gold potential across Zimbabwe’s many greenstone belts. Our common goal is to support the nation as it enters the modern mining era.
We have been highly encouraged by Pambili’s progress at Golden Valley and welcomed the recent news that the TSXV approved the Company’s acquisition of the project. I have every faith in Jon and the team’s ability to develop Golden Valley moving forward. Kavango will support them fully as a strategic investor.”