- Kavango Resources Plc secured £2.2 million (US$2.9 million) through a London Stock Exchange placing and subscription to fast-track the transition from exploration to pilot-scale gold production in Zimbabwe
- The company plans to build and commission a 250 tonnes per day gold mining and processing facility at its Hillside Gold Project, aiming to demonstrate Zimbabwe’s potential as a mining-friendly jurisdiction
- Funds will be deployed for resource drilling, underground development, and constructing a 200 tonnes/day Carbon In Leach processing plant
Harare - Kavango Resources Plc has entered a crucial phase of its Zimbabwe strategy, raising £2.2 million (US$2.9 million) on the London Stock Exchange through a placing and subscription to accelerate the transition from exploration to production according to the latest notice to shareholders.
Chief executive officer Ben Turney said the initiative is designed not only to establish commercial output but also to send a strong signal to the global investment community.
The UK- and VFEX-listed miner has made four significant discoveries in the past two years and now plans to commission a pilot-scale gold mine and processing facility in the first half of 2026.
“Our immediate objective now is to build and commission 250 tonnes per day of gold mining and processing capacity at our Hillside Gold Project,” Turney said.
He added that, this pilot-scale production will allow the company us to clearly and decisively prove to the international market that Zimbabwe is a mining-friendly jurisdiction that is open for business.”
The funds raised will be deployed across multiple fronts , these include resource and grade control drilling at Kavango’s Bill’s Luck gold mine, with a target of identifying three years’ worth of mineable reserves, alongside construction of a 200 tonnes of ore daily using the Carbon In Leach method to extract gold processing plant.
Additional exploration and underground development work will also be advanced, underlining Kavango’s pivot from exploration-led growth to near-term production.
Mining is Zimbabwe’s largest foreign-currency earner, accounting for roughly 75% of export revenue and contributing over 13% to GDP.
Gold alone delivered US$2.5 billion in export receipts in 2024, making it the largest mineral export followed by platinum group metals and as of August 2025 the total production is now at 28,498 tonnes according to Fidelity Printers and Refinery.
The government has set an ambitious US$12 billion mining industry target, seeking to attract international capital to scale up production across gold, lithium, chrome, and platinum.
In the past years, policy reforms have been introduced to lure investors including the introduction of the Victoria Falls Stock Exchange (VFEX) in 2020, a U.S. dollar-denominated bourse designed to give miners and other exporters access to international capital in hard currency.
At the same time, concerns remain around repatriation of profits, currency stability, and regulatory shifts. However, authorities have signalled greater openness, with the Ministry of Mines promoting “use it or lose it” policies to encourage exploration and development.
With its balance sheet strengthened and development pipeline defined, Kavango now faces the challenge of converting geological promise into output.
If successful, the company could establish a new model for frontier-market resource investment , one that blends international capital with on-the-ground execution to reshape perceptions of Zimbabwe’s mining potential.
Equity Axis News
