Kavango Resources Raises £2.2M to Accelerate Zimbabwe Gold Projects

Kavango Resources has raised £2.2 million to accelerate its Zimbabwe gold projects (image source)

Kavango Resources has secured £2.2 million to fast-track its gold exploration and development projects in Zimbabwe, reinforcing the company’s confidence in the country’s mining sector. The capital injection, raised through a direct subscription and placing of more than 227 million new shares, positions the LSE- and VFEX-listed miner for its next phase of growth.

Expansion Plans at Hillside Project

“We are now entering the crucial phase of Kavango’s plan in Zimbabwe,” said CEO Ben Turney. “Our immediate objective is to build and commission 250 tonnes per day of gold mining and processing capacity at our Hillside project in the first half of next year.”

The new funds will finance resource and grade control drilling at the Bill’s Luck mine while advancing construction of a 200 t/d carbon-in-leach (CIL) processing plant. Kavango’s strategy is to build three years of mineable reserves, providing a stable foundation for scaled-up production.

Strong Insider and Investor Backing

Confidence in the company’s outlook was underscored by chairperson Peter Wynter Bee, who personally subscribed for 10 million shares. Major shareholder Purebond also expanded its holding, subscribing for more than 111 million shares.

“This kind of insider participation signals deep confidence in both the assets and the team’s execution,” said London-based mining analyst Tendai Chikowore.

Zimbabwe’s Mining Reforms and Global Context

Kavango’s expansion comes as Zimbabwe works to rebrand itself as a mining-friendly jurisdiction. The government has introduced reforms aimed at attracting international capital, positioning the sector as a key driver of economic recovery. Analysts say Kavango’s pilot-scale production could serve as a test case for foreign investors wary of Zimbabwe’s regulatory history. If successful, it may pave the way for other mid-tier explorers.

Zimbabwe sits atop extensive greenstone belts, hosting untapped gold deposits. With global bullion prices holding steady above $2,000 per ounce, Kavango’s aggressive development strategy could deliver strong returns while redefining the country’s gold-mining landscape.

Outlook and Ambition

Kavango’s leadership maintains that near-term production at Hillside will showcase both operational capability and resource potential. The company’s broader ambition is to scale up output while positioning Zimbabwe as a reliable source of gold in Africa.