Trymore Tagwirei

London-listed Kavango Resources has secured approximately US$8.4 million from investors in Zimbabwe and the United Kingdom to accelerate development of its gold assets in the country.

The capital injection is expected to strengthen the company’s operations at the Hillside Gold Project while supporting further exploration and potential acquisitions.

In a statement, the company said the funds were raised through parallel share subscriptions in the United Kingdom and on the Victoria Falls Stock Exchange.

“Kavango Resources plc is pleased to announce that it has raised, by way of subscription, approximately US$4.7 million in Zimbabwe (the VFex Subscription) and £2.8 million (about US$3.7 million) in the UK (the UK Subscription),” the company said.

The fundraising will see the issuance of about 629.99 million new ordinary shares. According to Kavango, the subscription price represents roughly a 33 percent premium to the company’s mid-market share price recorded on March 5, 2026.

The company’s leadership also participated in the capital raise, with chairman and interim chief executive officer Peter Wynter Bee subscribing for 20 million shares in the UK portion of the offer at £0.01 per share.

The newly issued shares are expected to begin trading on both the London Stock Exchange and the Victoria Falls Stock Exchange once regulatory approvals are completed.

“It is expected that admission and the VFex Admission will become effective and that dealings in the UK Shares and the VFex Shares will commence at 8.00am on or around March 16, 2026,” the company said.

Kavango said the funds will primarily be directed toward expanding gold production at the Hillside project, advancing exploration activities and supporting general working capital requirements in Zimbabwe.

Part of the capital will also go toward the proposed acquisition of Nara and any associated legal costs related to completing the transaction.

Located in the Filabusi Greenstone Belt in Matabeleland South, the Hillside project currently produces about two kilogrammes of gold per month through small-scale operations. Kavango plans to scale up output through expanded mining and processing infrastructure.

The successful fundraising comes at a time when many junior mining companies globally are facing tighter financing conditions. However, Zimbabwe’s gold sector continues to attract investor interest, supported by strong international bullion prices.

Gold remains Zimbabwe’s largest mineral export by value and a key source of foreign currency, with exports reaching 44.7 tonnes worth about US$4.8 billion in 2025.