London and Victoria Falls Stock Exchange-listed mining and exploration junior, Kavango Resources Plc raised approximately US$2.97 million in a share sale to accelerate gold mining developments in Zimbabwe as it seeks to prove the African nation is open to foreign investment, Mining Zimbabwe can report.
By Rudairo Mapuranga
The company issued 227.8 million new shares at 1 pence each, it said in a statement. Its largest shareholder, Purebond Ltd., subscribed for more than 111 million shares. Chairman Peter Wynter Bee purchased 10 million shares.
Proceeds will fund the construction of a 250-ton-per-day processing plant at the Hillside project and drilling to define mineable reserves at the Bill’s Luck mine, both located in the Filabusi Greenstone Belt. The capital will also be used for a carbon-in-leach plant and general working capital.
“We are now entering the crucial phase of Kavango’s plan in Zimbabwe,” Chief Executive Officer Ben Turney said. “This pilot-scale production will allow us to clearly and decisively prove to the international market that Zimbabwe is a mining-friendly jurisdiction.”
The new shares are expected to begin trading on the London Stock Exchange on or around Sept. 15. Following the issue, Kavango’s total issued share capital will stand at 3.61 billion ordinary shares.
The company also secured a secondary listing on the Victoria Falls Stock Exchange last week, though its primary listing remains in London. Kavango said it raised $4.5 million during that subscription period.
