Kavango Considers VFEX for Funding Gold Projects in Zimbabwe
UK Stock Exchange-listed Kavango Resources is exploring a second listing on the Victoria Falls Stock Exchange (VFEX) to raise funds for developing its gold projects in Zimbabwe. This move will also provide local investors with opportunities to engage in the country’s mining sector activities.
By Ryan Chigoche
If successful, Kavango will become the sixth mining entity to list on local exchanges, joining Caledonia, Padenga, Rio Zim, and Bindura Nickel (currently suspended), alongside Hwange Colliery Mine.
This initiative aligns with calls from market experts urging authorities to enhance local bourses as attractive funding sources for Zimbabwe’s mining sector. Mining companies, on the other hand, are being called to consider dual listings, leveraging both local and foreign markets.
Currently, Padenga and Caledonia are listed on VFEX, while Bindura Nickel Corporation remains under trading suspension.
In a statement, Kavango highlighted that the listing on VFEX will offer Zimbabwe-based investors an opportunity to participate in its exploration and mining ventures.
“The proposed listing will enable local investors to engage in Kavango’s exploration and mining developments, expanding our capital pool and shareholder base, and supporting our strategic objective of enhancing local ownership in our projects,” said Kavango CEO Ben Turney.
“Our strategy emphasizes promoting local ownership to share in future successes. Despite being relatively new to Zimbabwe, Kavango has made significant strides in drilling and exploration activities, which we believe will attract further international investment into Zimbabwe.”
Recently, mining companies have been hesitant to list on local bourses due to perceived capital limitations and the investment climate. However, financial analyst Rufaro Hozheri told Mining Zimbabwe that local listing requirements are favorable, potentially encouraging more companies to consider listing.
In Zimbabwe, Kavango operates the Nara Gold Project, covering four historic mines near Bulawayo with cumulative production exceeding 90,000 ounces in the early 20th century.
The project includes extensive artisanal and historical workings, indicating substantial bulk mining potential. Magnetic surveying has identified a promising shear corridor along 5km within the Nara property, known for hosting significant gold deposits.
Previous workings in the area have produced 250,000 tonnes in tailings, which the company believes may contain some gold.
Zimbabwe’s local mining sector accounts for 13% of the country’s GDP, and the sector invested upwards of US$1.5 billion in capital projects over the past three years, with a further US$456 million lined up to boost production.