• Kavango Resources plc is set to list on the VFEX on 29 August 2025, aiming to raise up to US$13.5 million
• The listing will not involve new share issuance but will allow Zimbabwean and regional investors to trade USD-denominated shares through a local branch register
• The company holds a portfolio of early-stage exploration assets across Zimbabwe and Botswana, focusing on gold, copper, and nickel

Harare - Kavango Resources plc, a London-listed mineral exploration company, is entering the final stages of its planned secondary listing on the Victoria Falls Stock Exchange (VFEX), with official trading scheduled to commence on 29 August 2025, according to the latest  circular.

The move is to unlock regional capital markets while anchoring operations in what it describes as an “underexplored jurisdiction” with untapped geological potential.

''It is anticipated that the admission and dealings are expected to commence on or around 29 August 2025,'' reads the circular.

Kavango aims to raise up to US$13.5 million, primarily to accelerate development at its Hillside Gold Project and to support related exploration activities across its Zimbabwean portfolio.

To date, US$8.5 million has already been secured including a US$5 million convertible loan note facility from a consortium of Zimbabwean pension funds, structured under the vehicle Comarton, and US$3.5 million in equity from Kavango’s major shareholder, Purebond Limited.

The latter forms part of a broader US$5 million strategic commitment linked to the company's option to acquire the Nara Gold Project, which includes a JORC-compliant tailings resource.

In parallel, a UK fundraising round is underway, with Purebond expected to inject an additional £1 million (approx. US$1.27 million) at the same 1p per share pricing as the Zimbabwean offer creating a unified, transcontinental capital raising framework.

According to Kavango no new shares will be issued as part of the VFEX listing rather, the company will facilitate the trading of existing ordinary shares through a local branch register.

This model allows Zimbabwean and regional investors direct access to USD-denominated equity in a company that is actively exploring and developing projects in their own backyard  a unique proposition in the local equity market.

For Kavango, the dual-listing structure offers exposure to both domestic capital pools and broader trading liquidity in hard currency  an increasingly critical consideration amid Zimbabwe’s ongoing macroeconomic instability and restricted capital flows.

The company  has consistently characterised Zimbabwe as a high-potential but undercapitalised mining frontier ,noting  decades of underinvestment in mineral exploration, coupled with limited adoption of modern geological techniques that  have left much of the country’s  vast mineral resources  untapped.

It currently holds a portfolio of early stage exploration assets in both Zimbabwe and Botswana, focused on gold, copper, nickel, and other base metals. Its operating model is typical of junior exploration firms, identifying and de-risking mineral targets before scaling up or attracting interest from larger mining companies.

Kavango sees the geological parallels between Zimbabwe’s greenstone belts and Australia’s gold-rich systems as a blueprint for potential long-term development especially with the introduction of spiral decline mining methods, which are common in Australia but rarely used in Zimbabwe.

The VFEX was launched in 2020 as a USD-denominated subsidiary of the Zimbabwe Stock Exchange (ZSE) to attract foreign investment and improve capital account flexibility.

Initially, it offered a compelling incentive package  including capital gains tax exemptions, lower dividend withholding tax, and guaranteed repatriation of capital.

However, most of those incentives were discontinued by FY2024, leaving only the hard currency trading platform as its main draw.

This policy reversal has slowed issuer momentum. Kavango’s decision to proceed despite this policy shift suggests the company sees sufficient strategic value in gaining local shareholder participation and USD visibility.

The listing can continue to attract meaningful listings without tax incentives, relying solely on its sectoral alignment and hard currency proposition.

That Kavango was able to secure sizeable domestic commitments  especially from pension funds  suggests there is still investor appetite for mining-linked exposure, even amid Zimbabwe’s shallow capital markets and high jurisdictional risk.

This aligns with VFEX’s original vision to serve as a mining finance hub for Southern Africa.

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