Kavango Resources to list on VFEX

Published: 3 hours ago

British mining firm Kavango Resources Plc will make its secondary listing on the Victoria Falls Stock Exchange (VFEX) on August 29 as it seeks to raise US$13,5 million to bolster gold exploration operations in Zimbabwe.

Kavango, which is already listed on the London Stock Exchange (LSE), had a market capitalisation of £33,35 million (US$44,24 million) as of last Friday. The VFEX listing follows the company's recent announcement of a significant gold find at its Bill's Luck Gold Mine, part of the Hillside Gold Project in southern Zimbabwe, with drilling intercepts showing grades of 11,79 grammes per tonne.

The company has reintroduced historical names for four of its six gold prospects at Hillside - Bill's Luck, Britain, Nightshift and Steenbok - replacing earlier internal references. The Hillside and Nara projects are situated on the Filabusi greenstone belt, west of the Great Dyke in central-southern Zimbabwe.

According to Kavango's VFEX pre-listing prospectus, shareholders approved the issuance of up to 622 841 000 ordinary shares to support the VFEX listing and associated fundraising. Of the targeted US$13,5 million, US$5 million will go to Comarton through a convertible loan note facility, US$3,5 million to major shareholder Purebond Limited, and the remaining US$5 million will be offered to other potential investors.

The miner also plans to make part of the offer shares available to eligible employees under a structured share scheme in line with VFEX's public shareholding requirements, aiming to align staff incentives with shareholder interests.

Kavango will maintain its primary listing on the LSE but offer Zimbabwean investors flexibility to hold their shares locally, trade them on VFEX, or transfer them to London. Corpserve Registrars has been appointed as the company's registrar and transfer agent in Zimbabwe.

The company will also conduct a UK subscription after its VFEX admission, with Purebond pledging to invest £1 million (US$1,32 million) into the offering.

Kavango's VFEX listing is expected to enhance its access to local capital markets while giving Zimbabwean investors a stake in its gold exploration drive.
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