Kavango Resources plc has raised approximately US$8.4 million through parallel subscriptions in the United Kingdom and Zimbabwe, funds that will accelerate the expansion of its gold production footprint in Zimbabwe, Mining Zimbabwe can report.
By Rudairo Mapuranga
The Southern Africa-focused metals exploration and gold production company announced on 6 March that it secured about US$4.7 million from investors on the Victoria Falls Stock Exchange (VFEX) and £2.8 million (approximately US$3.7 million) from the UK subscription, both at a price of £0.01 per share.
The pricing represents a significant vote of confidence in the company’s Zimbabwe strategy, coming in at approximately a 33% premium to the mid-market price recorded on 5 March 2026. A total of 629,991,138 new ordinary shares will be issued under the two subscription tranches.
In a move signalling strong internal confidence, Chairman and Interim Chief Executive Officer Peter Wynter Bee personally participated in the UK leg of the fundraising, subscribing for 20 million shares at the same price.
Wynter Bee brings extensive Zimbabwean mining experience, having previously worked on developing mines in the country, including his tenure at Reunion Mining plc, which developed operations in Zimbabwe and Zambia before being acquired by Anglo American in 1999. His participation is viewed by market observers as a strong signal of management’s alignment with shareholder interests.
The company has applied for the newly issued UK shares to be admitted to trading on the Main Market of the London Stock Exchange. For the VFEX shares, a two-step process will see them first admitted to trading on the LSE before being transferred to Zimbabwe through a branch register control account, enabling direct listing and trading on the VFEX.
Both admissions are expected to become effective, with trading set to commence at 8:00 a.m. on or around 16 March 2026.
US$13.5 Million War Chest for Zimbabwe Growth
The fresh capital injection significantly strengthens Kavango’s financial position. When combined with existing cash resources and previously committed funds, the company now has approximately US$13.5 million available for deployment across its Zimbabwean portfolio.
According to the company, proceeds will be used for:
- Expansion of the Hillside gold production
- Acquisition of the Nara Gold Project
- Associated legal and transaction costs
- Further exploration activities
- General working capital
The Hillside Gold Project, located in the Filabusi Greenstone Belt in Matabeleland South, remains Kavango’s flagship asset. The project includes multiple gold prospects such as Bill’s Luck, Nightshift, Britain, and Steenbok, where exploration has confirmed mineralised structures suitable for both open-pit and underground mining.
Currently, the project is producing approximately 2 kilogrammes of gold per month from small-scale operations. The company plans to scale up production through expanded mining and processing infrastructure, supported by the new funding.
The fundraising also supports the planned acquisition of the Nara Gold Project, which comprises approximately 45 contiguous gold claims near Bulawayo in Matabeleland South. Funds have been allocated for both the acquisition and any related legal processes.
Strong Timing Amid Gold Market Momentum
The successful capital raise comes at a strategic time for gold-focused miners. Gold remains one of Zimbabwe’s most important minerals, accounting for the largest share of mineral exports and serving as a key source of foreign currency.
Zimbabwe’s gold sector recorded a strong performance in 2025, with 44.7 tonnes valued at US$4.8 billion exported. With global bullion prices remaining near historic highs, investor appetite for gold exposure continues to grow.
Kavango’s ability to secure funding from both local and international investors is particularly notable given the challenging financing environment facing junior miners globally, characterised by tightening credit conditions and volatile commodity markets.
Growing Confidence in Zimbabwe Mining
Kavango’s fundraising reflects broader momentum in Zimbabwe’s mining investment landscape. While its projects remain at early production stages, other international players, including Caledonia Mining Corporation and Namib Minerals, are advancing plans to develop new gold mines in the country.
These developments support Zimbabwe’s long-term strategy to increase mining revenues and formalise gold production, which has historically seen significant volumes channelled through informal and artisanal mining.
