Kavango Resources has launched legal action after the planned acquisition of the Nara Gold Project in Zimbabwe collapsed when the seller failed to complete the transfer of the asset within the agreed timeframe, Mining Zimbabwe reports.
By Ryan Chigoche
The Victoria Falls Stock Exchange (VFEX)-listed mining and exploration company said it is pursuing all available legal avenues against Simon John Bowman and his operating company, Romjack Mining Limited, who were responsible for selling the project under a Call Option Agreement covering 45 mining claims.
Kavango had exercised its option to acquire 100 per cent of the Nara Gold Project in June 2025, following an agreement initially signed in June 2023. The parties had set 27 February 2026 as the deadline to complete the transaction after an extension to the original terms.
However, the company said the deadline passed without the seller fulfilling the obligations required to transfer ownership of the claims, effectively bringing the transaction to a halt.
In response, Kavango Resources said it will seek to enforce the agreement and pursue compensation, stressing that the move is aimed at safeguarding shareholder interests. The company also indicated that further updates will be issued as the legal process unfolds.
The collapse of the Nara deal comes amid one of the strongest gold markets in recent history. Spot gold prices breached $5,000 per ounce in early 2026, reaching highs above US$5,400, reflecting heightened safe-haven demand driven by geopolitical tensions and economic uncertainty.
The dispute introduces uncertainty around the Nara project, but Kavango’s broader strategy in Zimbabwe remains centred on its Hillside Gold Project, where exploration work has been advancing across its portfolio in the country’s gold-rich greenstone belts.
Over the past two years, the company has reported several gold discoveries within the Hillside project area and is working toward establishing early-stage production capacity of about 250 tonnes per day as part of a phased development plan.
To support this work, Kavango Resources raised approximately £2.2 million in September 2025 through a direct subscription and placing, with the funds earmarked for development activities including resource drilling and the establishment of a carbon-in-leach processing plant.
The developments come at a time when Zimbabwe’s gold sector is attracting growing interest from international investors as several large projects move through development stages.
Among the major projects in the pipeline is the Bilboes Gold Project being advanced by Caledonia Mining Corporation, which is expected to become one of the country’s largest gold mines once developed.
Meanwhile, Ariana Resources holds the Dokwe Gold Project in the Tsholotsho District, widely regarded as one of Zimbabwe’s largest undeveloped gold deposits.
Another notable development is the planned restart of the Mazowe and Redwing gold mines by Namib Minerals, which are currently on care and maintenance but hold significant gold resources.
While such projects underline the scale of investment interest in Zimbabwe’s gold industry, the dispute surrounding the Nara acquisition highlights the commercial risks that can arise in mining transactions, particularly where agreements depend on private counterparties completing asset transfers.
For Kavango, resolving the dispute over the Nara Gold Project will be an important step, even as the company continues to advance its broader gold exploration and development activities in Zimbabwe.
On the outlook, analysts and investor surveys suggest the metal could remain elevated through 2026, with some forecasts indicating that gold may again test or exceed the $5,000 level later in the year as risk-off conditions persist and central banks maintain strong demand for bullion.
