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Kavango Resources Plc, a UK-based mining exploration company listed on the London Stock Exchange (LSE), has announced plans for a secondary listing on the Victoria Falls Stock Exchange (VFEX), scheduled for August 29.
By Ryan Chigoche
This strategic move aims to raise US$13.5 million to fund Kavango’s ongoing operations and exploration projects in Zimbabwe.
As of last week, the company’s market capitalisation stood at US$44.24 million, reflecting investor confidence in its growth potential.
In recent years, VFEX has emerged as an increasingly attractive platform for mining companies seeking to tap local capital markets.
Caledonia Mining Corporation, for example, has highlighted how its VFEX fundraising has outperformed efforts on the New York Stock Exchange since 2021, underscoring the exchange’s growing significance.
Kavango’s planned listing follows promising developments at its Bill’s Luck Gold Mine, part of the broader Hillside Gold Project in southern Zimbabwe.
Recent drilling results returned a high-grade intercept of 11.79 grams per tonne of gold, marking a notable exploration breakthrough.
To better communicate its progress, Kavango has resumed using traditional names for its first four gold prospects — Bill’s Luck, Britain, Nightshift, and Steenbok — which were previously designated Prospect 1 through 4.
Currently, Kavango’s core exploration focus lies on two gold projects, Hillside and Nara, both situated on the Filabusi greenstone belt just west of Zimbabwe’s Great Dyke. These projects underpin the company’s ambition to expand its resource base in the country.
In its pre-listing statement, Kavango disclosed that shareholders authorised the issuance of up to 622,841,000 ordinary shares at the annual general meeting on May 29 to facilitate the VFEX listing and related fundraising efforts.
Of the targeted US$13.5 million, US$5 million is earmarked for Comarton through a convertible loan note facility, which includes 37,034,293 shares worth approximately US$500,000 already issued at admission.
An additional US$3.5 million worth of shares — equivalent to 259,240,056 shares — has been allocated to Purebond Limited, Kavango’s largest shareholder, also issued upon admission. The remaining US$5 million is planned to be offered to new investors, subject to demand.
To meet VFEX’s minimum public shareholder requirements and to align employee interests with shareholders, Kavango will set aside a portion of the offered shares for eligible employees through a structured share ownership scheme.
Following its VFEX admission, the company also intends to launch a UK subscription offering. Purebond Limited, incorporated in England and Wales, has committed to invest around US$1.32 million in this UK round, reflecting continued support from major stakeholders.
In Zimbabwe, Corpserve Registrars will act as Kavango’s share registrar and transfer agent. Shares worth up to US$5 million will be made available for direct subscription or held through nominee accounts, depending on investor preferences.
Once the fundraising is complete and shares are allocated, Kavango will list them on VFEX by way of introduction while maintaining its primary listing on the LSE. It’s important to note that shares listed on VFEX will not be tradable on the main LSE market unless formally transferred to the UK share register.
This dual listing structure offers Zimbabwean investors greater flexibility, enabling them to hold shares locally, trade on VFEX, or migrate holdings to the LSE through Share Registrars Limited, Kavango’s UK registrar.
Should demand increase, Kavango has indicated it may issue additional shares to local investors, further deepening its presence in the domestic market.
