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HARARE – UK-listed mineral explorer Kavango Resources has announced plans for a secondary listing on the Victoria Falls Stock Exchange (VFEX) to attract local capital to its gold exploration projects in Zimbabwe.
The company revealed on Friday that it has appointed Inter Horizon Advisory as lead financial adviser for the proposed transaction.
“The proposed listing will provide Zimbabwean investors with the opportunity to participate in Kavango’s exploration and mining development opportunities. This will allow the company to access a larger pool of capital and shareholder base and achieve Kavango’s strategic objective of promoting strong local ownership in its projects,” Kavango said.
Kavango entered the Zimbabwean market last year with options to purchase 45 gold mining rights, seeing huge potential in a country that has seen limited exploration activity in recent years. The company is currently exploring the Nara project in Matabeleland North, which it believes could contain large, mineable gold deposits. Historical mining operations in the area have generated up to 250,000 tonnes of tailings, which Kavango also hopes to process to recover more gold.
“Over the past 12 months we have made a strong commitment to investing heavily in gold exploration and mining development in Zimbabwe,” said Kavango chief executive Ben Turney.
“A key part of our strategy is to promote local ownership in Kavango to share in the rewards of future success. In the short time we have been here, Kavango has made a very good start and our exploration and drilling have already yielded positive results. We believe that the more success we achieve, the greater the chance that other international companies will follow us and invest in this great country.”
VFEX, which exclusively settles in U.S. dollars, was established in 2020 to attract foreign investment. VFEX currently lists mining companies such as Bindura Nickel Corporation and Caledonia Mining Corporation.
In 2022, Karo Platinum issued $50 million in bonds on the exchange. Padenga Holdings, which controls gold company Dallaglio, listed on VFEX in 2021, attracted by foreign exchange retention incentives, but these incentives have now been cancelled. VFEX has 15 listed securities with a market value of $1.26 billion.
Source: NewZwire
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