Kavango Resources secures US$5M from local pension...

Kavango Resources secures US$5M from local pension funds on VFEX to expand gold mining operations

#KAV Kavango Resources – KSZ – Second Mineralisation Target Type at the ...

ZimNow Reporter

Kavango Resources PLC (LSE:KAV), a London-listed mining exploration and development company, has secured a US$5 million convertible loan note facility from a consortium of Zimbabwean pension funds, marking a pivotal step in advancing its gold projects in the country.

“This partnership exemplifies our strategy to integrate local stakeholders while advancing high-potential assets,” said a Kavango spokesperson.

The financing will accelerate mine development at its Hillside and Nara projects and fund construction of a gold processing plant.

Kavango plans to deploy initial tranches toward resource definition drilling and plant engineering, aiming to fast-track Hillside toward production.

The gold processing facility is expected to streamline operations, reducing reliance on third-party processors and boosting profit margins.

The facility, structured to be drawn in three tranches, will be channeled into mechanized mining infrastructure and operational scaling, with the loan convertible into shares on the Victoria Falls Stock Exchange (VFEX), Zimbabwe’s USD-denominated bourse.

“The convertible facility offers flexibility and strengthens our presence on the VFEX, enhancing visibility among regional and international investors,” said the Kavango spokesperson.

Analysts note the US$5 million infusion—equivalent to ~16% of Kavango’s market cap—could significantly de-risk project timelines and improve production forecasts. Conversion to VFEX shares may also broaden the investor base, leveraging the exchange’s tax incentives and hard-currency advantages.

Market Performance & Outlook

- Current Market Cap: $31.34 million

- Average Trading Volume: 23,200 shares

-Technical Sentiment: Buy (Recent analysis signals bullish momentum)