UK-listed mineral explorer Kavango Resources says it plans a secondary listing on the Victoria Falls Stock Exchange (VFEX), hoping to attract local capital as it extends gold exploration in Zimbabwe.
Kavango has engaged Inter Horizon Advisory as the lead financial advisor to the proposed transaction, the company said Friday.
“The proposed listing will provide an opportunity for Zimbabwe-based investors to participate in Kavango’s exploration and mining development opportunities. This will provide the company with access to an enlarged pool of capital and shareholder base and meet Kavango’s strategic objective of promoting strong local ownership in its projects,” Kavango says.
Kavango made its first investment in Zimbabwe last year with an option to buy 45 gold claims, saying it sees opportunity in a country that has seen years of low exploration activity. Kavango is exploring the Nara Project in Matabeleland North, which it believes has the potential to host a bulk mineable gold deposit. Previous workings in the area have produced up to 250,000 tonnes of tailings – the waste from mining operations – which Kavango also hopes may yield some gold.
“Over the past 12 months we have made a strong commitment to invest heavily in Zimbabwe’s gold exploration and mining development sectors,” says Ben Turney, Kavango’s CEO.
He adds: “A key part of our strategy is to promote local ownership in Kavango to share the rewards of future success. Kavango has made a very strong start in the short time we have been here, with our exploration and drilling already delivering positive results. We believe that the more success we have, the greater the chance that other international firms will follow our lead to invest in this great country.”
VFEX, which trades only in USD, was formed in 2020, with authorities hoping it would attract foreign capital. Miners on VFEX include Bindura Nickel Corporation and Caledonia, while Karo Platinum in 2022 issued a US$50 million bond on the exchange. Padenga, which controls gold company Dallaglio, also listed on VFEX in 2021, attracted by forex retention incentives, which were however later dropped. VFEX has a listed market capitalisation of US$ 1.26 billion with 15 listed securities. – (NewZWire)
