Kavango Resources, a London-based metals exploration company with a focus on Southern Africa, has announced its acquisition of an exclusive two-year option for a gold exploration project in Matabeleland, Zimbabwe.
The Nara project is comprised of 45 contiguous gold claims which Kavango believes can potentially host a bulk mineable gold deposit.
The project area has held historic high-grade underground mining and continuous surface small-scale mining and custom milling over the last three decades. From this, there have been approximately 150,000 to 250,000 metric tonnes of tailings generated. This presents a separate opportunity for potential near-term revenue generation as well. Kavango will have full access to the project area to conduct field due diligence including but not limited to surface mapping and geochemistry, geophysics, surface drill testing, underground sampling, underground drill testing, and assessing the commercial potential for processing the tailings through a comprehensive exploration program. Before deciding to exercise the option to acquire the Nara project, Kavango will complete its exploration programme.
“The greenstone belts in Zimbabwe host prospective rocks for bulk-mineable gold deposits, according to Kavango’s internal review and analysis. Many of these belts share notable similarities with some of Australia’s most prolific gold-producing regions.
“Zimbabwe has a strong tradition of mining. However, exploration and investment have been severely limited over recent decades. In 1980, Zimbabwe produced more gold than Australia, but the country has yet to experience the bulk-mining boom Australia did midway through that decade.
“We believe this presents a significant opportunity for Kavango and a commercial discovery,” comments CEO Ben Turney.
Nara Project Option Terms
Kavango has entered a 2-year exclusive binding option to buy outright 45 gold claims in Matabeleland, Zimbabwe (the “Nara Project”). The 2-year option period will allow Kavango to perform an appropriate exploration program to assess the Nara Project’s potential.
To exercise the Option, Kavango has agreed to pay the holder of the current claim (the “Vendor”) US$ 4 million cash (the “Acquisition Price”).
Kavango has agreed to pay an option fee to the Vendor of up to US$220,000 over the 2-year option period, split into 4 individual payments of US$55,000 each payable at the start of each half-year of the option period (the “Option Payments”).
In the event Kavango exercises the Option, any Option Payments paid to the Vendor will be deducted from the Acquisition Price.
Kavango will commit to spending US$ 1 million on exploration at the Nara Project over the 2-year option period, with a minimum exploration spend of US$500,000 in the first year. Should Kavango not exercise the Option, Kavango will turn over all exploration data to the current operator of the stamp milling operation at the Claims (the “Current Operator”), together with recommendations (where possible) on future development.
Kavango has the right to exercise the Option at its sole discretion, subject to the Company being up to date with the Option Payments and spending commitments. Kavango has the right to cancel the Option at any point during the option period and to exercise the Option at any time during the option period.
